Construction for Cathedral Commons a Step Closer

A sign today announces the parking lot of the now-closed Giant Food at 3336 Wisconsin Ave. will close April 23 to prepare for construction of Cathedral Commons. The grocery store closed last week, but the parking lot remained open. Crews also have removed the classic Giant sign on the building.

Bozzuto, Giant's financial partner for the project, posted a site plan yesterday for the $125 million mixed-use development that will span two blocks along Wisconsin Avenue.

Street-Works is developing the site that will have a new Giant Food anchoring 128,000 s.f. of new retail space. The site also will include 137 apartments, eight townhouses and 500 parking spaces.

A raze permit for the Giant as well as other parts of the 3300 block were approved Jan. 30th by the Historic Preservation Office according to documents released by the Office. Permit applications for the 3400 block also were filed.

Washington, D.C., real estate development news

Wisconsin Ave. Giant to Close In March as Cathedral Commons Gears Up

The Giant supermarket at 3336 Wisconsin Avenue, NW will close in March in preparation for the construction of Cathedral Commons, according to a spokeswoman for the supermarket chain.

Sharon Robinson, an outside spokeswoman on behalf of Giant said that construction for the $125 million project will begin this quarter. A raze permit for the building as well as other parts of the 3300 block were approved Jan. 30th by the Historic Preservation Office according to documents released this week by the Office. Meanwhile, the Giant Pharmacy has closed, and Starbucks cafe in the 3400 block also closed this week; its building also has a date with the wrecking ball as part of the project.

(Photo by Ken Johnson)

United Food and Commercial Workers Union Local 400, which represents Giant employees at the Wisconsin Ave. store, were also given notice this week that the location will close within the next 30 days to begin razing the old building.

The UFCW employees won't lose their jobs, but will be transferred to other Giant stores in the region, according to UFCW Local 400 Secretary Mark Federici.

Developer Street-Works, which also designed much of Bethesda Row, has designed Cathedral Commons to bring 137 apartments, eight town homes and more than 125,000 s.f. of retail space, including 56,000 s.f. to replace the 50-year old store.

For the past decade, Cathedral Commons has been ground-zero for redevelopment politics, pitting anti-development activists versus the food store and its financial partner The Bozzuto Group.

Meanwhile, Giant, like its fellow unionized grocery chain Safeway, is facing increasing pressure to improve or replace its smaller-footage legacy stores like the one on Wisconsin Avenue, one of the least liked supermarkets in the District.

That's the result of stiff competition from non-unionized upscale chains like Harris Teeter and Whole Foods, which have entered the District in force, as well as discount food sellers like Walmart, which just this week began work for a groundbreaking at its first store in the District at New Jersey Avenue and H Street.

Pleasanton, California-based Safeway Inc. is also looking to replace its 35,000 s.f. Safeway in Tenleytown, less than a mile away, with a five-story mixed use project that will bring a new 56,000 s.f. store to the neighborhood. But that project likely won't get started until the new Cathedral Commons Giant is ready and open for business. Giant also closed their large Shaw supermarket last September, in advance of what will (in two years) become an anchor supermarket and residential project in Shaw.

Update: According to Sharon Robinson, the above-mentioned spokesman, a date has not been set for closure of the Giant.

Washington D.C. real estate development news

Cathedral Commons Delayed Until 2012

Redevelopment of the Wisconsin Avenue Giant, a project that has inspired both relief and resentment, and has suffered from numerous lawsuits by a small group of locals hoping to derail the mixed-use project, seems destined to maintain the status quo well into next year. Despite notice early this summer that the missing financial partner could be on board "any day now," the project still lacks the financial partner needed to move forward, and store employees now tell DCMud that the store will remain open through the end of the year, at least.

Developers have successfully fended off various lawsuits attempting to stop Cathedral Commons (some claims are still being pursued), but what the suits have failed to do seems to have been accomplished by the market, as timelines continue to slip with the absence of funding. Early predictions had the project well underway, if not complete by this time. In 2006 officials thought the project could take 4 years to complete, and at least one team member told DCMud in 2008 that construction would begin within a year. The team then scheduled an aborted "launch party" nearly one year ago. Early this summer vendors began clearing out, and knowledgeable parties to the transaction predicted movement was at last imminent. But the Giant remains operational, and this week officials at Stop & Shop, Giant's parent company, told store employees to expect to work into next year.

Parties now say the financial partner is still not official (and won't release names), and Sharon Robinson, a PR captain for Giant, confirmed, "There is not another financial partner in the development at this time." Robinson added that Giant aims to break ground "sometime after the first of the year." Robinson insists that the project has not been delayed. "The PUD is still valid and Giant is moving forward with plans to redevelop Friendship Shopping Center and filed plans for its building permits last week." No general contractor has been selected.

The project will add a new 56,000 s.f. grocery store, 85,000 s.f. of additional ground floor retail, 150 condos or apartments and over 500 parking spaces, and bring back the familiar neon Giant sign that graces the present supermarket.

Robinson added by email that, "The lawsuit challenging the authority of the Zoning Commission, which was filed by a small group of opponents, is moving through the judiciary process. Many neighbors continue to contact the development team expressing dismay at the lawsuit and asking how they might show support for the project." While that may be helpful, it seems that for now it is also not quite enough.

Washington D.C. real estate development news

Wisconsin Avenue Giant Close to Construction?

Is the wait almost over? The Wisconsin Avenue Giant is scheduled to break ground at the end of this summer, says Jonathan Willingham, spokesperson for Ward 3 Councilwoman Mary Cheh. After a decade of delay and lawsuits, it seems the plans may finally come to fruition.

The Cathedral Commons project includes a new 56,000 s.f. grocery store, 85,000 s.f. of additional ground floor, street-level retail, 150 condos or apartments and over 500 parking spaces.

While past deadlines for the project have slipped due in part to continuing suits by locals hoping to derail development, the end of this month also marks a more telling sign: the exodus of many businesses on the strip as some retailers move further uptown on Wisconsin Avenue, after been pushed out by the owner. Starbucks wears a banner informing customers of its intent to stay put until construction begins, and then it will relocate to relocate to a temporary structure.

Last July, the Zoning Commission gave their unanimous approval of the project, to which the Wisconsin Newark Neighbors Coalition (WNNC) responded by filing an appeal, claiming that the Zoning Commission lacks the power to eliminate a neighborhood commercial zone designation on the subject lots. A decision has not yet been delivered on that appeal.

In the meantime, while Giant and partner Street-Works ready for the demolition, last month they committed to cleaning up ground water contaminants underneath the supermarket as part of the redevelopment.
Washington, D.C. real estate development news

Federal Realty's Mid-Pike Plaza to Rival JBG's NoBe

Earlier this month, Federal Realty's plans for "Mid-Pike Plaza" passed under the noses of the Montgomery County Development Review Committee. Apparently, it passed the sniff test; but unfortunately it takes a lot more than that to get development projects approved and rolling in Montgomery County. The development site spans 24.38 acres to the west of Rockville Pike and just north of Old Georgetown Road. Developers have plans big enough to warrant the massive site, calling for a whopping total of 1,725 residential units when all is said and constructed. Residents will be joined by roughly 300,000 s.f. of retail, over a million square feet of office space, a 125-key hotel, and a carbon imprint of 4,145 parking spaces (all structurally built). It's yet another sign that White Flint is destined to become drastically denser in less than a decade.

Being still in the wee hours of the project's preliminary planning life-cycle, drawings, courtesy of architect Tim Mount at Street-Works are are rather sketchy (pun intended) and offer only a distant perspective. This fuzziness cannot be attributed to lack of a steady hand, but is rather typical of the master planning stage in which details are scarce, and reveals the wiggle room necessary for developers and architects to successfully navigate the often tumultuous and always tedious planning process. But that process is getting easier and more efficient thanks to the newly approved White Flint Sector Plan, says Federal Realty developer Evan Goldman. "Our Sketch Plan follows almost exactly to the White Flint Sector Plan, which the citizens were already highly involved with," Goldman explains, "making the process a lot quicker, and minimizing disputes." Goldman and Federal Realty will present their Sketch Plan to the Montgomery County Planning Board next month, and hope to submit their Site and Preliminary Plan applications shortly after.

If the market continues to cooperate, and the planning process goes smoothly, Goldman believes they'll be ready to break ground in 2012. He thinks that would place Mid Pike Plaza as the front runner of major developments currently in the pipeline. LCOR has already broken ground on the new U.S. Nuclear Regulatory Commission (NRC) building at North Bethesda Center/White Flint Metro, and JBG's North Bethesda Phase II should follow right behind Mid Pike Plaza. ProMark's North Bethesda Gateway also looks to get in on the action in the coming years.

Phase I of Mid Pike Plaza will land White Flint three new buildings: one high-rise residential, a small office atop retail, and a low-rise residential over retail. "These will anchor our Main Street and usher in improved streetscapes and a community park," promises Goldman. The second phase will complete the streetscapes, the street grid and public space for the retail plaza, and several more pockets of public green spaces, while future phases will proceed to fill in the block with larger buildings, one by one. As for architectural details, those will emerge later. The next step is "to meet with Street-Works in order to create design guidelines for our main storefronts and streetscapes," says Goldman.

With Bethesda having been the economic engine of the region for the last 20 to 30 years, many of local developers concur with Goldman's assessment of White Flint as the "logical next step" for development. "We're setting up a really good street grid, with all sustainable buildings, great pedestrian friendly roads, and great transit," says Goldman. The blank slate that is the area surrounding the White Flint metro will enable developers' smart growth ambitions to play out on a large scale; and it seems that developers and the community are taking this precedent seriously. Aside from the many proposed development projects, the newly established special taxing districting in North Bethesda will also help improve the area's infrastructure: a ten percent commercial property tax increase as part of the new Sector Plan will help finance $208 million in construction during its lifespan. With Montgomery County officials projecting that new growth in the White Flint area could bring in as much as $6.8 billion, it seems like White Flint is ready to take the torch from Bethesda whether they want to pass it over or not.

Montgomery County, MD Real Estate Development News

Wisconsin Giant "Launch Party" this Thursday

Despite a pending legal battle that has tied up the Wisconsin Avenue Giant, developers are moving forward - pretty soon - with their 56,000-s.f. grocery store project that will add additional retail, residential, and office space. Developer Steet-Works has announced a "launch party" for this Thursday to celebrate the impending demolition of the abandoned 1950's era G.C. Murphy Co. store and existing Giant, which will yield to a newly renamed "Cathedral Commons."

Parent company Stop & Shop owns the site bounded by Idaho Avenue, Wisconsin Avenue, and Macomb Street and divided by Newark Street, all of which now contains a mostly-abandoned, one-story retail strip and surface parking. Upset with the parking provisions, the threat of increasing density in the area, and even challenging the Commission's authority to make the specific zoning amendment ruling that approved the project, the Wisconsin-Newark Neighbors Coalition (WNNC) had filed a lawsuit to prevent the project, challenging, as they had previously, the Zoning Commission's 2009 approval of the project.

Despite the burst of optimism on the ultimate outcome of the development, the litigation has not yet been resolved, and Street-Works does not plan to begin construction until March of next year. DC officials and President of Giant Food Robin Michel, among others, will gather to announce their commitment to moving forward, ambitiously marking the last days of the 50-year old block that is a deteriorating and out-dated eye-sore. In an official press release Giant promises: "the development will create new jobs and feature neighborhood retail shops, restaurants, a 56,000-square-foot supermarket, townhomes, apartments, engaging open spaces, and an attractive streetscape." Developers insist that the current tenants will relocate into the new retail space upon completion.

When asked what circumstances changed to justify throwing a launch party this week, Sharon Robinson, a consultant for the Giant Team, explained that "this is simply a chance for the company to publicly voice its support for the project, and its commitment to move forward." She added that it will provide the opportunity for Giant officials to elaborate on the details and timeline of the development plans going forward. Councilwoman Mary Cheh is one of the many invested individuals who is happy to hear the news. "I am delighted, as I'm sure residents are," Cheh explained, "that after waiting for many years for this development, that we are finally on the threshold of it actually happening." There is always the worry that the litigation will again prove a hitch in the development's progress, but Cheh has been assured that the legal case of the opposition is not very strong.
In total, the proposed project will contain approximately 136,500 square feet of retail space and 140-150 residential units. After construction begins, developers expect the entire project to be completed within three years. How the project will be phased - likely in two phases - and how developers plan to transition from the old grocery store into the new, remains unsettled. Perhaps those answers will be revealed on Thursday.

Update: The launch party, as predicted by our prescient poster below, has been called off. Giant recently sent out an e-blast saying: "Giant Food wants to give all members of the community an opportunity to join us to launch the new project to redevelop the Wisconsin Avenue Giant and Friendship Shopping Center, which will be known as Cathedral Commons. To honor the High Holy Day, Rosh Hashanah, we will postpone the previously announced launch event." A new date has yet to be set.

Washington DC real estate development news

Giant Controversy on Wisconsin Ave Development

On Thursday, the Zoning Commission reconsidered several elements of the previously approved application for the planned Giant grocery store and surrounding redevelopment. The Commission approved the Planned Unit Development (PUD) for Friendship-McComb SC, Inc. along with their developer, Street-Works, in July, but both the community and the developer took issue with parts of the Commission's decision. Prior to last night's hearing, the Wisconsin-Newark Neighbors Coalition (WNNC) had filed a lawsuit to prevent the project, challenging, as they had previously, the Zoning Commission's authority to make the zoning amendment. The development will replace the abandoned 1950's era G.C. Murphy Co. store and existing Giant, which will yield to a proposed 55,000-s.f. grocery and additional retail, residential, and office component. Parent company Stop & Shop owns the site bounded by Idaho Avenue, Wisconsin Avenue, and Macomb Street and divided by Newark Street, all of which now contains a mostly-abandoned, one-story retail and surface parking. According to Sharon Robinson, a Consultant for the Giant Team, Giant requested more "specific language that would facilitate evaluation of compliance" with the approval. In July the Commission order stated, "the applicant shall also fulfill any other commitment or promise it made as referenced in the findings of facts above, even if not specifically stated in one of the above conditions." Surprisingly, developers found that language vague. The request was deferred until the October 19th meeting, with the Commission asking the applicant and the community to define “off peak hours” in relation to a parking discrepancy. WNNC's beef with the Commission, besides its alleged lack of authority, has to do with

residential parking permits. The group requested that the Commission consider, again, the amount of planned parking. Previously, the District Department of Transportation, the Office of Planning and the Zoning Commission staff all agreed that the residential parking provided (1 per unit in the multi-family residential and 2 per townhouse) was more than adequate. But the appeal received a big ole "Denied" stamp last night. In response to the lawsuit, Giant posted a statement on its website saying they were not surprised a suit was filed, given the contentious nature of the PUD process. They say the appeal is subject to a judicial process that could take"two or more years to complete." Giant reaffirmed its commitment to the new store as well as to the large group within the community who supports the new development.

Washington DC retail and commercial property news

A Giant Project on Wisconsin

The long-awaited Giant grocery store and surrounding redevelopment, expected to bring life back to its location on Wisconsin Avenue near the National Cathedral, is a bit closer to becoming reality. Street-Works, the development and consulting firm heading the project, has said it is ready to move forward on the project and will file its zoning application within the next 60 days.

The development (rendering above) will replace the abandoned 1950's era G.C. Murphy Co. store and existing Giant, which will yield to a proposed 55,000-s.f. grocery and additional retail, residential, and office component. Parent company Stop & Shop owns the site bounded by Idaho Avenue, Wisconsin Avenue, and Macomb Street and divided by Newark Street, all of which now contains one-story retail, albeit partially abandoned, and surface parking.

"This project redevelops the site, which is pretty much functionally obsolete," Richard Heapes, principal at Street-Works, said. "It turns it into a pedestrian-oriented part of the neighborhood with wide sidewalks, trees, public spaces, and most importantly, a state-of-the-art grocery store. At the end of the day, it completes what is already there and brings it up to date."

The site is divided into two parcels: On the south side of Newark, developers will tear down the current Giant and construct a more modern facility in its place, as well as add 42,000 s.f. of small retail shops and office space. The block will also receive 21 residential units; 13 above the retail and eight townhouses along Idaho Ave. On the north side of Newark, developers are planning 30,000 s.f. of street-level retail with 124 residential units on the four upper floors. The retail will most likely be similar to what currently exists: service and convenience stores as well as neighborhood- serving restaurants. According to the developers, some of the current retailers will relocate to these new building. 400 new underground parking spots will serve the whole site.

Sizes and costs of the individual residential units are premature, but 10% will most likely be designated as affordable housing. And what new development would be complete without some green? Pedestrian- friendly public spaces are being designed to grace Idaho Ave. and Newark St. with trees, fountains, and places to sit. Street-Works is still deciding which green components to add to their buildings, which could include green roofs on the residential units. According to George Idelson, president of the Cleveland Park Citizens Association, "One of the things the community wanted was a lively streetscape. That is what the plan calls for, and it seems to be doing a pretty good job with that."

The old neon Giant sign will be incorporated into the new construction - a condition of the neighborhood association, reflecting their opinion that it has become an icon for the area. Developers are also aiming to fit the project in, architecturally speaking, with the existing buildings. "The design came from picking up the style that is already there in the adjoining neighborhood," Heapes said. "It is contextual. My goal for the project is to make sure people aren't going to look at the site as a project that is sitting in the middle of Cleveland Park."

The existing 18,500-s.f. Giant will stay open as long as possible until construction of the actual grocery store begins. After the application process, formal public hearings will take place, along with an open house meeting for any interested neighbors that will be hosted by Street-Works on the site itself. Idelson said this is just what the neighborhood needs: another chance to weigh-in. "I think generally speaking based on the public meetings, the neighborhood is anxious to have a new store," he said.

Street-Works hopes to have approval from the District by the end of the year with construction beginning in mid-2009. Construction will be phased, with the south parcel finishing before the north begins, altogether lasting 24 to 36 months.