Community Center-Library Combo Coming to Deanwood

Mayor Fenty was joined by representatives from the DC City Council, DC Department of Parks and Recreation (DPR) and DC Public Libraries (DCPL) this week to break ground on the new Deanwood Community Center and Library. After issuing a RFP back in October, the Banneker Ventures-led development team selected Forney Enterprises, Inc. to serve as general contractor on the project. The double duty community center is being designed by Ehrenkrantz Eckstut & Kuhn Architects.

The $33 million project will stand on the same parcel as its dilapidated predecessor, at 49^th and Quarles Streets, NE. The new 63,000 square foot DCC, however, promises to be anything but ramshackle with planned amenities that include an indoor swimming pool, gym, game room, daycare center and fully stocked library – the latter being a product of a collocation agreement reached between DPR and DCPL. “[This]…represents an innovative approach to design that urban areas across the country are employing in order to provide residents a variety of services in restricted public space,” said DPR Director Clark E. Ray. The new LEED-certified DCC plans to open its doors in the summer of 2010.

Tenley Wars III: The Council Strikes Back

Protracted. Excruciating. Unnecessary. These are but a few words used to describe the ongoing battle being waged by local community groups opposed to the Office of the Deputy Mayor for Planning and Economic Development (ODMPED) and developer LCOR Inc.'s plans for a new Tenleytown-Friendship Heights Neighborhood Library and residential development. And yet the twisting story further intensifies since DC City Councilmembers Mary Cheh and Kwame Brown have stepped into the fray.

At issue is the construction of a new Tenley Library to replace its predecessor (closed 4 years ago), updates and additions to the over-enrolled and threadbare Janney Elementary school, and, in return for these improvements, permission for the developer to build a residential complex on the site. A win-win scenario about which no one seems happy. The newest chapter involves LCOR's latest proposal to extend the residential component onto the school's green space (an ingredient mysteriously pushed by the Deputy Mayor and seemingly favorable to no one), a move that spurred Janney's School Improvement Team (SIT) to revoke its conditional support of the three-tiered agreement. Remaining undecided is the pace of renovations to the school, which the District wasn't planning to get to until 2013 despite immediate needs, hence the SIT favoring a quicker fix by the developer.

With the school's support withdrawn in the already contentious battle, Councilmembers Cheh and Brown penned a letter to Mayor Fenty expressing their wish to see the project’s library component move forward, while insisting that LCOR’s residential development be sent back to the drawing board.

“We write to ask that you permit the Tenley Library to build now and separate it from any possible mixed-use, or public/private, development on the site,” read the statement's first paragraph. “As for the current LCOR proposal, we believe that it is fatally flawed,” begins another. Cheh and Brown propose a compromise that would allow the library to be constructed with structural supports in place to accommodate any future development above. Meanwhile, the residential component would be put on hold until a mutually agreeable design is produced. In conclusion, the letter asked for a response to their concerns by Friday, November, 7^th.

The Letter hinges on LCOR's plans for the residential component, initially planned to sit on top of the library, then moved (by mysterious edict of a revised RFP) off the library and in place of the neighboring Janney soccer field. Now, two differing LCOR site plans (dated November 4th) put the apartments back on the library once again, but still encroaching on Janney green space. That in turn caused SIT to withdraw their support, as both proposals take up some of the green space now used by Janney, but add it back in behind the school, in place of the surface parking lot. According to Kirk Rankin of the Janney SIT, the SIT is opposed to any plan that would require Janney to cede any of its green space for the development.

Still with us? Good, because further complicating matters is the timing, and everyone agrees the quicker the better. And yet The Letter contemplates a two-year construction of the library, completion of which would be followed by a second construction project on the same small site, a process that may yield an architecturally challenged, ever-dusty construction site.

Cheh was not amused by the Deputy Mayor's response, or lack thereof, to The Letter. “Immediately after [receiving our letter], the Deputy Mayor for Economic Development issued a statement saying they were going ahead with it. No one has ever explained to me, ‘With what are they going ahead?’” said Councilwoman Cheh, referring to the widespread confusion resulting from the repeated relocation of the residential units.

While ODMPED would not respond to DCMud's inquiries regarding the matter, an LCOR representative did comment on the council's qualms and the impact that residential development will have on the school zone. “We’re going ahead with it and [ODMPED] is going ahead, too,” said Timothy D. Smith, Senior Vice President of LCOR. “The two [library and residential] are combined. It’s one building with a very prominent location along the street that reads ‘Library’ when you’re riding along Wisconsin Avenue…it’s probably the best way to use the land, rather than build separate apartment buildings.”

"We've been working on this steadily and people make comments in the meantime," he continued. "We were working down Mary Cheh's list of things that she wants to see accomplished when the letter was written...We have been meeting with citizens groups and modifying our plan. We do hope to gain support back from Mary."

Councilwoman Cheh, however, was not quite as optimistic with respect to the library’s future: “If they surplus property, that requires council approval. If the ward councilmember doesn’t approve of the action, I doubt very much that my colleagues would approve of it over my opposition.”

Meanwhile, a standalone library has been funded and approved and could, with Council okay, start construction relatively soon. We'll be waiting to see who blinks. Stay tuned for Episode IV: Revenge of the SIT.

First Project Underway at Minnesota-Benning

Mayor Fenty and officials from the Office of Property Management were on hand today to break ground on the new Department of Employee Services (DOES) headquarters - soon to be erected at 4058 Minnesota Avenue NE. This is the second such project in the immediate area, as just last month, Donatelli Development announced they would be developing a $108 million mixed-use project on an adjoining parcel.

The new 229,000 square foot DOES building will include a "one-stop employment and business center," a community meeting room, a local retail incubator and, of course, enough office space for roughly 500 employees. A green roof is also in the works.

Designed by DC-based architects Devrouax & Purnell, construction of the $48 million facility is being overseen by EEC of DC, Inc. and Forrester Construction (one of the few local development companies that say they are actually hiring at the moment). The new headquarters is expected to be completed in early 2011.

Fenty and company used the occasion to kill two birds with one microphone, as he also used the opportunity to announce the appointment of Joseph Walsh as the new Director of DOES. Walsh was poached by the District from his last post as Director of Policy and Planning in the Executive Office of Labor and Workforce Development under Massachusetts Governor Deval Patrick. Here’s to hoping Mr. Walsh likes this job more than his old forty-syllable job title once the paint dries on that new HQ.

Northeast DC Icon Gets a Little Help

Mayor Fenty was on hand today to announce that the District has finally settled on a developer and would move ahead with redevelopment of the long-abandoned Strand Theater in Deanwood. The project is now in the hands the Washington Community Development Corporation (WCDC) and Banneker Ventures LLC - organizations that plan on transforming the 80-year-old former movie theater into the new home of an 18,000-s.f. restaurant and 18,000 square feet of “affordable” office space. The remaining 16,000 square feet within the Strand will be “dedicated for community and cultural uses,” according to a press release issued by the Mayor’s office.

“There will be more energy back on this corner for the neighbors who live in the Ward 7 community, east of the river in general and for the entire city,” said Fenty from the sidewalk of 5131 Nannie Helen Burroughs Avenue, NE. Fenty and WCDC head Rev. Steve Young, also leader of the Holy Christian Missionary Baptist Church for All People located across the street, went on to promise that 30 - 40 new, permanent jobs will created as a result of the revitalization effort.

Curiously enough, this marks the second time the District has named the WCDC and Banneker as developers in charge of the Strand. The first came this past July, when Deputy Mayor Neil Albert told DC Mud that the project would “break ground in the next two weeks.” Sean Madigan, the Mayor’s press contact, today told DC Mud the District was forced to hold off a bit, while the rest of the details concerning the theater were hammered out.

Banneker has had a dream year lobbying District officials, having secured from District work on the Strand, and having been named Master Planners for the Park Morton redevelopment, and as a developer of the $700 million Northwest One development. WMATA added to the company's portfolio by naming Banneker the lead developer in June for its Florida Avenue project, and Banneker has its own plans in place for 814 Thayer, a 52-unit condominium in Silver Spring's central business district. WMATA Board member and DC Councilmember Jim Graham reportedly pushed for the developer's inclusion in the project; WMATA said it chose the developer based on its "experience," noting the technical difficulty of building a project on top of an existing Metro tunnel, though Banneker has no previous experience building above a Metro tunnel. Or, apparently, above much else. Park Morton, 814 Thayer, and the WMATA project have yet to break ground, and Northwest One has only recently done so, leaving the conversion of several small apartment buildings into condominiums as its only achievements. Banneker's website touts its appointment to several of the above projects, as well as its "tremendous breadth of experience and professionalism." Calls to Banneker’s metro area offices went unanswered.

As it stands today, Green Door Advisors and Blue Skye Construction will handle the build-out of the heavily dilapidated building, located at the intersection of Burroughs Avenue and Division Avenue NE. The Strand Theater is currently on the DC Preservation League’s list of Most Endangered Places in the District. Hopefully, that will be changing as the Strand moves on to a bigger and better future.

Washington DC commercial real estate news

2300 Penn: Demo Begins

Mayor Fenty brought a little showmanship to the usual groundbreaking ceremony as he announced the District's plans to revitalize the 2300 block of Pennsylvania Avenue SE, and then, in a gesture that may inspire more city youths to be Mayor, began demolition of one of the buildings himself (pictured).

"While all groundbreakings are significant, a groundbreaking here on the 2300 block of Pennsylvania Avenue just shows that all of this great economic activity is bringing prosperity and progress...east of the river," said Fenty at the demolition site. "I think for that we should all be excited."

The Computecture Incorporated-designed facility at 2323 Pennsylvania Avenue will consist entirely of affordable housing with 247 units, 115 units of which will be "workforce" housing for families earning no more than 60% of the area median income. In addition, it will also feature a Harris Teeter grocery store and 8,000 square feet of space that the city hopes will go to "high-end" retailers. “If Pennsylvania Avenue is going to be the major corridor leading into east of the river neighborhoods that we all expect it to be," the Mayor said in closing, "we’ve…got to get rid of the blighted properties that are on it."

As the first major development in greater Anacostia since the Penn Branch Shopping Center was built a decade ago, the project at 2323 Pennsylvania Avenue is exciting indeed. The lot where the project is to be erected was formerly home to an unsightly strip of used car lots and a tattoo parlor. An interesting note on the block’s historic status: one the homes slated for demolition is where John Wilkes Booth was treated for his injuries following the assassination of President Lincoln.

The mayor detailed the $7 million in construction loans and $1.2 million in affordable housing tax credits offered to the developer for the project and then thanked the DC City Council for its determination in getting the project off the ground over the past two years.

Also in attendance at the event were DC Councilmember and Chair of the District’s Committee for Economic Development, Kwame Brown, Anthony Muhammad of the Advisory Neighborhood Commission 8A and Tim Chapman of Chapman Development, the primary developer behind the project – in addition to a packed house of community leaders and activists.

Brown went on to express his pleasure with the development from the perspective of someone who lives only blocks away. “I think there is no greater sign that what we’re doing together from an executive and legislative standpoint is working,” he said. “I think in the next five years we’re going to look back and say ‘Wow, look what used to be here and what is here now.’”

Brown trumpeted the housing development as a beacon of hope for residents of Wards 7 & 8 and as a surefire measure to draw to new retailers and residents to a part of the city best described as undesirable, if not dangerous. The afternoon’s remarks came to a close as Mayor Fenty got behind the wheel of a heavy duty land mover to demolish a one-story brick structure, giving the project a memorable kick-off.

This is not Chapman Development’s first foray into development of the District’s less affluent areas. The firm was previously responsible for the Lotus Square Apartments on Kenilworth Avenue, NE. According to the Bank of America representative responsible for funding the Penn Avenue project, Lotus Square maintains the appearance of market rate housing, despite its affordable, and enjoys high levels of tenant satisfaction - one the driving forces behind the selection of Chapman as developer. The work site is currently being cleared by 25 members of the Earth Conservation Corps (ECC) with construction expected to begin once demolition is complete.

Cluster Luck?

The Department of Housing and Community Development has issued a solicitation for developers to bid on four clusters of land in the Southeast, Northeast, and Northwest quadrants of DC, in the hopes of turning underutilized property into affordable and market rate housing. The Property Acquisition and Disposition Division (PADD) of the DHCD is offering the sites in an effort to dispose of properties in its inventory while maximizing the city's profit from their sales. PADD will base its selection on proposed development plans, pricing proposals, the amount of affordable housing offered and the potential community and local business benefits. Developers must present evidence of complete funding for their proposal; the developers selected will take title to their respective cluster on which all existing non-historic structures will be razed.

The clusters are:

Site Cluster #1 (Anacostia)
1700 W Street, SE
1704 W Street, SE
1708 W Street, SE
1712 W Street, SE
1716 W Street, SE
1720 W Street, SE




Site Cluster #2 (Old City)
4540 Kramer Street, NE
1613 Kramer Street, NE







Site Cluster #3 (Old City 2)

4 Q Street, NW
6 Q Street, NW
8 Q Street, NW
10 Q Street, NW
14 Q Street, NW
14 Florida Avenue, NW
16 Florida Avenue, NW

Site Cluster #4 (Old City)

1621 Kramer Street, NE
1627 Kramer Street, NE
1629 Kramer Street, NE
1631 Kramer Street, NE
1632 Kramer Street, NE
1633 Kramer Street, NE

The solicitation encourages proposals to include a mix of uses including family-style affordable dwelling units with two or more bedrooms so families can "grow in place". As usual, the District wants to see evidence of community outreach, complete financing that requires minimal financing from the City, and proof that the units will remain affordable for 15-24 years.

Proposals should specify the type and number of housing units offered, and the scope of new construction and renovations by providing floor plans, site plans, and amenities. In keeping with the Fenty affordable housing pledge, 30% of all proposed housing must be affordable with preference given to those who exceed the requirement.

The lucky developers selected must "participate in a transparent and collaborative process involving the District, PADD, and community stakeholders", and, as with any good business deal, the winner will offer the greatest economic benefit to the District and require the lowest amount of subsidy.

Submissions are due by September 17th; the District will select a winner on November 3rd.

From AWC to NCRC to DMPED, Fenty Lauds Change

Mayor Adrian Fenty, Deputy Mayor for Planning and Economic Development Neil Albert, and Councilmember Jack Evans (D-Ward 2) held a public ceremony this morning to celebrate the one year anniversary of the District's decision to disband and take control over the portfolios of the Anacostia Waterfront Corporation (AWC) and National Capital Revitalization Corporation (NCRC). In a tribute to their combined foresight, the Mayor lauded the District's "significant progress" on over two dozen key from the portfolios since the merge, and offered up morsels of imminent announcements. "There were a lot of properties in these two quasi-public entities and it was the decision of the Council of the District of Columbia to make sure that those properties moved a lot faster, that they got developed quicker, and most importantly, that people saw results and I can say that a year later there has been a flurry of consistent activity," Fenty said. With $60 billion in the citywide pipeline since 2001 and $13 billion in current economic development projects, the Office of the Deputy Mayor's portfolio now includes over 12,000 residential units - including 4,500 "affordable" units - 1,800 hotel rooms, 2 million s.f. of retail space, and 8 million s.f. of office space.

Looking back on their recent successes, the Mayor noted that on May 14th, the District issued a RFEI for a master developer for Hill East Waterfront, 50 acres around the former DC General Hospital site. On June 4th, the District issued a solicitation for a development partner for Parcel 69, a potential $130 million office/hotel project by the Southwest Freeway. Master land planning began at Boathouse Row in SE on July 11th. On Tuesday, the Council approved a $198 million TIF/PILOT package to fund park and infrastructure improvements for the $1.5 billion Southwest Waterfront redevelopment. Yesterday the District selected Argos Group to develop two properties on Capitol Hill, including the Old Engine House 10 into eight condominiums. And looking forward, Albert told DCMud the Strand Theatre project (5131 Nannie Helen Burroughs Avenue, NE), developed by Washington Metropolitan Community Development Corporation and Banneker Ventures, will break ground in the next two weeks. He added that his office will also announce a developer for 6425 14th Street, NW in the coming weeks, a 12,100-s.f. parcel of land in Brightwood. Sean Madigan, Director of Communications in the Office of the Deputy Mayor, predicts an announcement for 5th and I, as well as Minnesota-Benning Road, NE, in the next few weeks, and that the Park Morton development group will be announced "imminently." Evans, who had a hand in the creation of both the NCRC and the AWC, said the decision to create the organizations was correct at the time, as was the decision to consolidate them. "I was there for the creation of NCRC and AWC and at the time when we were looking at putting those semi-private entities in place, the District government wasn't functioning, and so the idea of having an NCRC was something like the Pennsylvania Avenue Development Corporation model to get economic development projects done in the city," Evans said. "Then we learned that the semi-private entities were not doing what they were supposed to and we rolled them back into the government and put them under the Deputy Mayor and as we said today, it seems the decision was absolutely the correct one, because now we have a unified government and we can now focus on these projects and get them done. What we did in the past made sense and what we did last year made sense and we are now celebrating the results of those actions," 

Evans concluded, as the development troika lauded each other's vision and accomplishments. Albert added that a major goal of the consolidation was to establish one point of accountability for economic development in DC, but also to save taxpayers money. "One of the reasons the Council and Mayor worked so hard to consolidate the agencies, was to make sure that there was a single point of accountability on all economic development projects here in the District. Citizens had been asking for it, and they got it with this merger. Also, this merger resulted in significant savings for the taxpayers - over $5 million in savings because of the consolidating," Albert said. Like a gloating parent, Fenty added, "I just love efficient government, we have too much waste - a lot of these quasi-public commissions and entities and boards, they just spend money wastefully and we're gonna put a stop to that too." 

Washington DC retail and commercial property news

O Street Market Gets Its Dough

The District of Columbia announced today an agreement with Roadside Development to help finance the O Street Market, a mixed-use development that will likely be the showpiece for a revitalized Shaw. The deal will provide a $35 million tax increment financing (TIF) package to help developers bridge a financial gap and achieve the $260 million needed for the project. The current market, built in 1881 and now a crumbling memento of the neighborhood's failure to attract the investment, has sat vacant for years, but will now be transformed into a mixed-use anchor that will include 630 residential units, 80-100 of which will be affordable, senior housing units, a 200-room hotel, a 560-space parking garage and 87,000 s.f. of retail that maintains the historic facade. Giant will replace its 28-year-old Giant grocery store with CityMarket, a 71,000 s.f. store that will be the largest supermarket in DC and the largest Giant store in the chain.

Under the new financing agreement, the District's contribution will support bond issuance to cover a portion of initial construction costs and the developer will repay the bonds with part of the new tax revenue generated by the project. If the DC council passes the pending financing package at their July 15th meeting, construction will begin in a year. "This is what we need, it is what we deserve, it is long overdue, but now on its way," Mayor Adrian Fenty told a cheering crowd of Shaw residents at this afternoon's press conference. "This is a big day for us, I would like to see the O Street Market get the same kind of attention and expediency that we saw at Eastern Market, so it's exciting. It is a project that has something for everyone, community benefits - affordable housing, senior housing, parking - it really has the support of the entire community. It was just frustrating to see it go through so many hurdles to get to where it is now," Cary Silverman, DC Council, Ward 2 Candidate told DCMud.

Roadside originally slated the market for renovations to accommodate new retail space, but heavy snow brought the roof down both on their plans and the building itself in February of 2003. Since then Roadside formulated a $250 million revised plan to not only bring the historic market back to its original splendor but to fill four acres of land between 9th, 7th, P and O Streets, NW with residential and commercial space. In August 2007, the Historic Preservation Review Board approved revitalization of the site and the Mayor's agent for historic preservation ok'd partial demolition because of the development's special merit, leaving the Zoning Commission as the only entity standing between Shaw residents and their commerce. But a lack of agreement between Zoning and the developers led to three months of hearings; an October 15th meeting ended with Zoning's complaints about the 110-ft. building height and they sent the project back to the design phase again on November 19th. The Zoning Commission approved the project for "set down" at the December 10th meeting, and gave it final approval on May 12th. Developers eliminated the residential space planned for the top two floors and deleted 100 parking spaces and 20 affordable units from the scheme to reduce construction costs and compensate for the loss of potential income. In addition to a brand new grocery store, other project benefits include $255,000 worth of charitable contributions to Shaw organizations, a shuttle to operating Giant stores during construction, 400 construction jobs, 400 permanent jobs, and the reconnection of 8th street to increase pedestrian activity in the area.

Washington DC commercial property news

Hill East - Another Day, Another Waterfront Initiative

A Request for Expressions of Interest was officially issued today by the District of Columbia to attract a master developer for "Hill East," 50 acres of real estate on the former D.C. General Hospital site and Anacostia River. Hill East is one of three major redevelopment sites that make up the Anacostia Waterfront Initiative, a 20 year plan to turn the Anacostia River into a thriving residential, commercial and retail center, not to mention place of recreation for D.C. residents. At a press conference this morning at the Stadium-Armory Metro Station, Mayor Adrian Fenty said developers are invited to submit proposals through August. A three month review period will follow, and the selected developer will be announced at the end of the year with major District-developer planning starting in early 2009.

Fenty stated that “The RFEI process is underway and we look forward to announcing a developer whose plan complements what is already here on site and takes advantage of the opportunities of the river. We want the development to serve as a gateway between Capitol Hill and the Waterfront so people can walk down to the Anacostia River, which is hard to do now." As if you would want to.

The Hill East site, which is two and a half times bigger than the development at the old convention center, is intended to be a low-impact, LEED certified mixed-use development. The project will include residential, retail, and office components and will extend Massachusetts Avenue and other streets within the site to tie the new neighborhood into the existing community; including, apparently, the correctional facility, which will remain on site. Councilmember Tommy Wells, D-Ward 6, said the District envisions some sort of “health plex”, which could range from doctors’ offices to a specialized treatment facility, but that the decision is a long way off.

According to the RFEI, the development could result in “up to 3,000 new housing units, over 2 million square feet of office and institutional uses, new primary care medical facilities, and over 100,000 square feet of ground-floor retail space.”

“It will be a truly mixed-use project,” said Deputy Mayor Neil Albert. “There is a great need for affordable housing in the District. There is a need for a health-plex, and because there are two metro stops [DCmud is still trying to locate the 2nd one], it will be good for office space, maybe some offices that are being forced out of the downtown area because of increasing lease prices,” he said.

“The more we bring to the waterfront, the more time people will want to spend there. We already have a bike path underway. We need to embrace the river as a community asset,” said Wells. Both Wells and Fenty pointed out the need to reduce the pollution in the river and to work with Maryland, the state through which the majority of the river runs. They both said part of the project’s goal is to make the river suitable for canoing and even swimming (cringe).

“It has been a dumping ground for too long. People say ‘who would want to live by the river?’ but what is possible here is a new neighborhood – the Anacostia River as an amenity,” Wells said.

The site is bounded by 19th street, Independence Avenue, the Anacostia River, and the Historic Congressional Cemetery. The entire site is 67 acres, but development will take place on only 50 of those. The land, known as Reservation 13, is technically owned by the General Service Administration, but was given to the District under the 2006 Federal and District of Columbia Government Real Property Act of 2006, a “Transfer Act”. As DCmud reported in April of last year, 12 acres of the property were to be given back to the Federal government for a congressional mail facility. According to Fenty, the District is now looking for an alternative site for this facility and it will not be part of the Hill East development.

For those worried (or happy) about losing their Anacostia River views, maximum building heights for the west portion of the site will be a towering four stories, the central portion, a skyscraping seven stories, and the eastern portion will rise to a stratospheric 10 stories. That's sarcasm, in case you missed it.

DC Announces New Convention Center Site Agreement

Mayor Adrian Fenty announced plans today for one of the last remaining parcels of land on the site of the old convention center. Under a new agreement, the city will allow development of a 400-room "high-end" hotel and 100,000 s.f. of additional retail space on the 53,000 s.f. plot of land now known simply as "Parcel B". This portion of the site had previously been reserved for construction of a library, but the District had not made any final decisions on the facility and did not want to further delay what is being designed as a "new city center."

(Dcmud's information on "Parcel B" is too new to have renderings - the rendering shown is of the southern parcel.)

Standing in a corner of the current Convention Center, overlooking the site of the old one, Fenty said the District reached a deal with developers Hines Archstone to lease the site for 99 years. The District had previously cemented a deal with Hines Archstone for the southern half of the site - a project estimated at $850 million that will add 350,000 s.f. of retail space, over 670 apartment and condominiums with at least 134 affordable units, and 465,000 s.f. of office space between New York Avenue, 11th, H, and 9th Streets NW.

“The one thing the District is missing that so many other large cities have is a bustling area where people come after work to shop or eat or to hang out, a city center.” Fenty said. In addition to the office, retail, and residential space, the project will include an additional 1.5 acres of public open space. There will be a park in the northwest corner as well as a central plaza between the residential buildings on the corner of 9^th and H streets.

The “B parcel", bound by New York, 9th, and what will be 10th Street, was originally considered as a potential site for a museum or library in order to attract more families. Today, however, Fenty said that while the District is still “working aggressively” with the Library Board, there is a significant amount of programming under the current plan to attract DC residents to the site."

As the master developer, Hines Archstone had the first right of refusal to lease the B parcel from the District if the city chose not to locate a library on the site.

“This area is surrounded by museums; the Newseum just opened a few blocks away, the Portrait Gallery, the Spy Museum…we want this place to provide a social atmosphere outside their homes where residents can come and sit without having to sit at a café or pay to eat or drink,” Fenty said.

Kingdon Gould III acquired a parcel on the Northeast corner of the site - the last site to reveal development plans - in a land swap that the city conducted to facilitate construction of the Marriott next to the new Convention Center. The Parking Management, Inc. president has his own plan for the site, but it must be "consistent with the entire site's master plan."

While retailers have not yet been announced, the developer has committed to devoting thirty percent of retail space to merchants with six or fewer stores in the United States, but will focus on a wide range of grocery stores, restaurants, fashion stores, and entertainment or performance venues. There are also plans for one larger retailer like Nordstroms or Macy’s; Fenty and the development teams will be meeting with companies in the coming weeks, but a final announcement is not likely for about six months.

The project will generate 3,000 development-related jobs and 2,500 direct permanent jobs. It will also generate a projected $32 million a year in annual direct tax revenues. According to developers, the District will receive more than $200 million in consideration for the land as part of the land lease including a minimum of $28.5 million in lease payments, $55 million to provide affordable housing on site, and $48 million in payments for new infrastructure. Two new streets, I and 10th, will be constructed through the site.

When asked about the likelihood of delivering the project in a timely manner given the not-so-exuberant state of the economy, Councilmember Jack Evans, D-Ward 2, said the District has not been affected by the economy and that this project’s success would be no different than that of other D.C. projects like the Nationals Stadium.

“The Southwest waterfront looks pretty good. Poplar Point is off in the distance, but Clark, the main developer hasn’t had problems getting the money they need. There is such a strong interest in the development of the District that as long as that interest remains, these projects will stay on schedule,” Evans said.

The first phase of the project, which includes the office, apartments, and condominiums, will begin in the second quarter of 2009, while the entire project will be completed by the end of 2011.

Evans added that this summer the city is planning to set up a large screen in the parking lot on-site to continually broadcast the Olympic Games. He said the city’s goal is to use the backdrop of the Chinatown arch to attract families and residents to the area.

“This is the most exciting property on the East Coast,” he said.

Lincoln Theatre's Development Debut

This morning, Mayor Adrian Fenty held a press conference to raise the curtain on the city's plan to save and develop U Street's historic Lincoln Theatre. The project will entail development of the parking lot behind the historic D.C. theater, with some of the resulting profits being earmarked to save the beleaguered venue. The 88 year old District-owned theater had received much press as of late, issuing warnings of closure unless it receives funding sufficient to cover its operating expense shortfall.

The Deputy Mayor's Office for Planning and Economic Development has now issued a Request for Proposals (RFP) for developers interested in the space, located in back of 1215 U Street NW. We're guessing that few people will miss the 40 surface parking spaces; the Mayor opined that, when developed, the lot could hold a 90,000-s.f. building, possibly occupied by a hotel, offices, or residences.

Among the requirements for any potential developer: the stipulation that at least 30 percent of any housing units be set aside as affordable housing, as would be obligatory in any DC-owned property. Also, projects must include "at least 7,500 square feet of flexible event space, including a restaurant-quality kitchen, which would be managed by the theater management."

Ward 1 Councilmember Jim Graham, also in attendance, expressed his obvious excitement that the project has begun “moving and shaking.” He and Mayor Fenty both emphasized the importance of the lot’s development to the continued economic growth of the U Street area —and its benefit to Lincoln Theatre. As Mayor Fenty put it, “This is and was black Broadway” - and he wants to keep it that way - and by combining affordable housing, some needed development on U Street, and saving the theatre all in one act, we're guessing he'll get a standing ovation.

Washington DC commercial property news

DC Kicks Off Minnesota Metro Development

Mayor Adrian Fenty announced yesterday that that the District has issued a solicitation of bidders for a five-acre lot adjacent to the Minnesota Avenue Metrorail station. The chosen team will have the opportunity to build up to 600,000-s.f., though the city has not specified the type of development, leaving open options for a mixed-use development of office, retail, and housing.


According to Sean Madigan of DC's Office of Planning, "We don't have a firm idea of what we're looking for, in terms of whether the development should be pure office building with street-level retail, or just have a retail focus, or housing focus. We really are looking to the development community to see what is really possible there." The site is adjacent to the future location of the Department of Employment Services' newly announced headquarters, a 230,000-s.f. building at the northwest corner of Minnesota Avenue and Benning Road NE, which will include ground-floor retail and and underground garage.

Potential bidders for the site are required to include a 20 percent equity partnership with
Local, Small and Disadvantage Business Enterprises. The chosen development partner must also show an effort to include Ward Seven contractors and businesses in their plans. The area is already under revitalization - it sits amidst about four million s.f. of new projects at Parkside and Ward Seven, and the city is pumping about $40 million into the neighborhood through the Great Streets Initiative. A new Benning Road Library may also be popping up soon in the neighborhood.

"It couldn't be better located," Madigan said. "The city sees this as a great site because it is located right there at the Metro, and is a really prominent corner at Minnesota and Benning. It really is the gateway into that part of Ward 7." Proposals are due by May 6th; the city hopes to narrow down their choices by the end of the summer.

NPR Announces New Home in Noma

Today, Mayor Adrian Fenty announced the newest resident of NoMa, NPR, which is now making preparations to dispose of its old site. The District's favorite nonprofit will add to the list of NoMa's growing family, XM Satellite Radio, CNN, the Department of Education and the Bureau of Alcohol Tobacco and Firearms. According to the NoMa Business Improvement District (BID), an organization created by the City Council to support development in NoMa, private developers have invested over $1 billion and broke ground on over three million s.f. of space within the area north of Massachusetts Avenue since the initiative began.

J Street Development, which had other plans for the site at 1111 North Capitol Street, NE, before deciding to sell to NPR, will develop the 10 story, 400,000-s.f. office building and the massive, 60,000-s.f. newsroom bullpen inside. The building will take the place of the old Chesapeake and Potomac Telephone Companies warehouse, which is currently leased by the Smithsonian. Shalom Baranes Associates will design NPR's new global headquarters with space for more than 20,000 s.f. of retail while maintaining a number of facades from CPT's historic building. To begin the move, NPR will begin marketing their old digs at 635 Massachusetts Avenue for sale within the next two weeks. The organization will then leaseback the property until their move-in date, expected by the end of 2011.

"There are businesses within this city's boundaries that are important to the fabric of our communities. NPR is one of those businesses. We started working months ago to find NPR a new headquarters...This project will be an impetus for many things to come over the years," announced Fenty proudly.

"The new headquarters will be the physical manifestation of our broader thinking about NPR for the future...This translates to a setting that offers our staff the most creative, collaborative and interactive atmosphere to do their best work," boasted Ken Stern, CEO of NPR. With this openness in mind, Stern then discussed the vast amounts of public space that the development will include in the new campus, to be used for live broadcasts, lectures and for the community at-large.

Studley represented NPR in the deal, searching for a place that was close to the metro to serve commuting NPR employees, while at the same time attempting to remain within the District. According to Vernon Knarr of Studley, "For NPR to move outside of DC would have been a big change."

As part of the development, the city will help fund the project with a dual phase, 20-year tax abatement which translates to roughly $40 million dollars, a factor that Deputy Mayor for Planning and Economic Development Neil Albert said was "critical to the economics of this deal." Alongside those tax abatements will come a slew of streetscape improvements to make the project "feasible and aesthetically pleasing," added Fenty.

NPR was founded in 1970, and opened up shop on M Street, only to move to Penn quarter more than a decade later, in what many called a pioneering move. Stern likened their current move to that same pioneering mentality from the '80s.

Clark Wins Poplar Point

Mayor Fenty announced this morning that Clark Realty Capital was chosen as the developer for Poplar Point - 110 acres of undeveloped land with a full mile of Anacostia waterfront, sitting just across from the new baseball stadium. Development of Poplar Point is the key to the District's $10 billion, with a "b", Anacostia Waterfront Initiative.


The District began the process with a solicitation last August, bids were due by last November. According to the District, it sought development teams based "on their vision, qualifications, financial capacity, and commitment to community engagement." The District and Clark still have an uphill battle to get the land secured; it is still owned by the federal government and transfer depends on a suitable environmental impact study. The final plan will include a 70-acre park, a "hub for businesses" and an assortment of mixed used development in an area the District has called "underused and isolated." Clark's plan included a bridge over I-295 to make the park accessible to pedestrians from Anacostia.

Clark Realty is based in Arlington, Virginia, and offers a broad range of real estate development, management and financing services. Mayor Fenty called the project "the largest economic development project the District has ever embarked on and we are making investment where it is needed most - East of the River."

Council Nixes Funding Plan for Stadium Parking

The DC Council yesterday failed to advance legislation to fund two above-ground (and one underground) parking garages adjacent to the new Nationals ballpark, punting (sports puns being appropriate) the issue out of the Council.  Mayor-in-wait Adrian Fenty had proposed a funding mechanism for the new garages (the city is required to provide 1225 parking spots for the stadium) that would not raise the previously agreed $611 million spending cap for the new stadium – of course, this creative accounting would require $56 million to be taken from non-stadium city funding, a method only a budget director could love. The new owners of the Nationals have proposed less expensive free-standing, above-ground parking, but Mayor Anthony Williams has proposed below-grade parking to allow for mixed-use development above the garage. The Council’s vote - for an emergency declaration to proceed – was 7 for, 6 against, which failed to meet the required supermajority for emergency measures. The worst-case scenario, if all options fail, is for the city to simply pave over the five-acre northern parcel to provide some parking spaces – a solution nobody wants. It is unclear whether the issue will next be taken up by the Council or by the DC Sports and Entertainment Commission.

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