The Mission in Logan Gets Extension

The former automobile show room and current home of Central Union Mission in the 14th Street Historic District is one step closer to a long-awaited redevelopment following a Historic Preservation Review Board meeting on Thursday. 

With limited discussion, the board voted to accept staff recommendations granting a two-year extension to the project on the southeast corner of 14th and R Streets, accepting refinements made in response to the Board's 2006 direction, and restating that it is consistent with the Preservation Act.
Developer Jeffrey Schonberger (Alturas LLC) has been planning to renovate and expand properties at 1625 - 1631 14th Ave., NW since 2006, pending relocation of the homeless shelter that now owns and operates the building. The current structure - a 5-story former Studebaker show room built in 1922 and three, 3-story brick row homes originally built in the late 1800's but remodeled after the turn of the century for commercial uses - will involve restoration and new construction.
According to the Historic Preservation Office staff report prepared for Thursday's meeting, the redevelopment will include restoring the four buildings' facades to their early-20th-century appearance, building a seven-story addition behind the rowhouses and adding underground parking in what used to be the showroom basement. The double-height auto showroom would also be restored and the buildings appearance maintained to the greatest extent possible.

The ground floor of the project will be designated for retail, said Eric Colbert of Eric Colbert & Associates, the architect for the project, predicting at least one restaurant in the mix. Blake Dickson Real Estate will be marketing the retail space.  The upper floors of the row homes and the additional rear structure will form residential units including some two-story units, Colbert said. The Mission building was built by the Wardman Construction Company.

Delays primarily related to relocating Central Union Mission, once slated for Georgia Avenue but now scheduled to go to the Gales School, have hindered development in the past.

Colbert and Schonberger said after the meeting that construction documents would be filed next month and that they would be ready to break ground on the project in 7 to 12 months.

Washington D.C. real estate and retail news

Gales School Groundbreaking for Central Union Mission

Work to convert the city-owned Gales School into Central Union Mission's new home will kick off May 7th with a groundbreaking ceremony.

The gutted building at 65 Massachusetts Ave, NW, provided a raw canvas for the Mission and Cox Graae + Spack Architects to create a space for the new shelter and homeless resource center. Plans also show a small rear addition to the building.

Forrester Construction will build out the interior, which will include spaces for the Mission to continue providing shelter, meals, and programs for homeless men in 34,000 s.f. of new and renovated space.

The Mission will rent the Gales School from the City for $1 per year, a deal reached after the Mission won an RFP for the project nearly 2 years ago that was subsequently contested. Renovations will cost the Mission about $12 million. The low rent and practically new building should leave more money in the Mission's account in the long run for provision of its services.

Deborah Chambers, director of communications and outreach for the Mission, said that while the group owned its current home at 14th and R streets Northwest, the maintenance and utilities costs on the old building are exorbitant. A part they recently needed for the out-dated elevator cost $7,000, she said.

The money saved on repairs can help support the additional 50 or 60 residents the Mission is expected to house at the Gales School. It also will provide the new services needed for a daytime shelter for residents. The 110 men who call the Mission home now must leave after breakfast, she said, but the new location will have recreation rooms, computer labs and classes accessible throughout the day.

"Being able to provide the men with conditions and surroundings and beds that will help lift their self-esteem is something we're greatly looking forward to," Chambers said. "We bandaged this place, we have things holding together with staples and tape, but surroundings help somebody feel like there is a possibility and there is a future. We hope to provide them with those kinds of amenities."

Renovations should be completed next April. But the Mission must be out of its Logan Circle building in February pursuant to a contract to purchase inked several years ago but not yet executed.

Chambers said there could be a 30-day gap in service between leaving their current location and opening at the Gales School, and that some residents will go to the group's camp in Brookeville, Md., while the rest will rely on local homeless shelters and service providers.

The Mission has tried to move for several years. A previous deal for the Gales School fell through when the ACLU sued, claiming the award of the RFP by the city to the Christian-backed Mission violated the Constitution's Establishment Clause. Community protests then prevented a move to Georgia Avenue and Newton Street, leading the Mission to pursue a mixed-use development at the site instead.

With the Gales School finally secured, plans to redevelop the Mission's Logan Circle property can move forward, too.

Developer Jeffrey Schonberger (Alturas LLC) has been planning to renovate and expand properties at 1625 - 1631 14th Ave., NW since 2006, pending relocation of the homeless shelter. The new retail and residential project is scheduled to break ground in less than a year.

Washington, D.C., real estate development news

Gales School RFP's Semi-Announcement

The Fenty administration has reportedly awarded the Gales School RFP to the Central Union Mission. The District has made no official pronouncement on the subject, and would not return repeated calls, but on Friday, Clarence Carter, the Director of the DC Department of Human Services, told Councilmember Tommy Wells (D-Ward 6) that the Department awarded the contract to the Mission.

The Department of Real Estate Services (DRES) issued an RFP in January and twice extended the submission deadline, originally set for February 16th and ultimately enforced March 26th. At the time, a DRES representative told DCMud it had received three applications, though Carter only acknowledged two. The respondents were the Central Union Mission and Ready, Willing & Working Inc. (RWW).

The Mission plans to match the service they now offer on 14th Street, NW, expanding from 135 beds to at least 150 beds for the men's Christian homeless shelter. The Mission will likely add to the rear of the building with a design by Cox Graae and Spack Architects of Georgetown, a build-out that would allow for kitchens and extra classrooms.

The other applicant, a joint venture between RWW, the Doe Fund Inc. and Building Partnerships, proposed to convert the school into a facility providing housing and job training for upwards of 100 homeless and formerly incarcerated men.

Friday's semi-announcement caught many observers by surprise, including Councilmember Tommy Wells, who had asked Carter for an update during a hearing. Wells commented that "the proposal by RWW is still something that is needed by the city..." Carter indicated his agency hopes to find space for RWW on the campus of St. Elizabeths.

When asked for additional details on the award and a timeline for construction, Charles Allen, the spokesperson for Tommy Wells, replied in an email, "The Friday hearing was the first we had heard about it...we are working to follow-up and get more information." Sources familiar with the Mission's project were equally surprised and eager to learn more about the award. Several calls and emails to the District Government for additional details were not returned.

The Mission's bumpy past with the Gales School boils down to concerns over government subsidies going to religious organizations. The America Civil Liberties Union (ACLU) filed a lawsuit claiming an Establishment Clause violation - i.e. separation of church and state - because a previous agreement reportedly would have netted $12 million for the Mission (including the property value), which requires homeless men to participate in religious services in return for room, board and counseling services. In a previous conversation, David Treadwell, Executive Director of the Central Union Mission, said, "I can't speak for the ACLU, but I believe the concern was more the $7 million than the property exchange" in the previous RFP; this year's RFP did not include a monetary exchange.

In March, Arthur Spitzer, Legal Director of the ACLU, said his organization has no problem with religious organizations running social services. The problem is when those services are only offered in exchange for "hellfire and brimstone" proselytizing services. Ultimately, Spitzer said, he "hopes they have made this into a fair process" and if it is, and if the Mission wins, then "perhaps that will be OK."

Addendum: In the wake of this report, the District made their announcement official with this announcement.

Washington, DC real estate development news

Historic Gales School: The Anti-Shelter?

Though the Fenty Administration is keeping mum on the names of the Gales School RFP respondents, two of the three submitting teams have provided DCMud with details of the projects they hope to build on the visible and historic downtown site.

The Central Union Mission, which now operates out of Logan Circle, has plans to match the service they now offer nearby, expanding from 135 beds to at least 150 beds for the men's Christian homeless shelter. The Mission plans to add to the rear of the building with a design by Cox Graae and Spack Architects of Georgetown, a build-out that would allow for kitchens and extra classrooms.

Meanwhile, a joint venture between Ready, Willing & Working Inc. (RWW), the Doe Fund Inc. and Building Partnerships also met the RFP deadline in March. The RWW team has proposed a conversion into a facility providing housing and job training for upwards of 100 homeless and formerly incarcerated men. The RWW program currently supports only 20 men at a time, without housing, in its undersized trailer on the grounds of Union Station.

According to Patty Brosmer, President of RWW, her team offers "not just an overnight shelter," but rather a "more comprehensive" solution with plans for a "long-term shelter and opportunity center," with men receiving on-site training and support. RWW partners with local Business Improvement Districts (BIDs) to provide the men with a job and income. "The biggest thing we can do for the homeless is give them job opportunities," said Brosmer. Generally men remain in the program for 9-12 months, during which time - ideally - they learn a new skill, save money, and ultimately move on to affordable housing and stable employment. Brosmer said that with a waiting list of 150 names, there is no shortage of men seeking help from RWW.

With Bonstra Haresign Architects designing the project, the RWW team intends to transform the Gales School from its current state as "a hole in the urban fabric" into a vibrant new "Center for Opportunity." According to a press release, the architects plan to "respect and preserve the dignified character" of the 120-year old building. The exterior masonry will be restored and fitted with historically correct windows, and the four chimneys along the roofline will be restored, plans that must go before the Historic Preservation Review Board. The new interior will feature a "state of the art kitchen" for teaching culinary skills, conference and training areas, and of course beds. The Gales School Center will have "great food and a nice surrounding," making it the "anti-shelter" asserts Brosmer.

As far as financing goes, the New York-based Doe Fund has revenue-generating businesses, based on similar programs, that will help support some of the rehab and operations for the new center. RWW proposes that the District pay the organization to run the shelter. As Brosmer puts it, the District normally pays $25,000 to support one person in a homeless shelter annually, but this program, thanks to grants and other revenue, can do the same and give them job training for $17,500 a year. The best part, says Brosmer, is that after a year, the success rate is generally about 65%. Annually, she estimates, the program could save the District $1.5 million based on a 65% success rate.

Working with Harkins Builders, RWW is ready to "hit the ground running" claims Brosmer. "We'll have to secure some of the financing once we get the lease, but I believe it can be done from start to finish...in a year and a half."

Washington, DC real estate development news

Future of 14th and R Still in Limbo

The ever-changing plans for the site of the former Central Union Mission will go before Zoning this month for an extension to an approval granted in May 2008. The project will sit directly across the street from a planned seven-story residential development, each hugging their respective corners on 14th and R Streets NW. Developer Jeffrey Schonberger of Alturas Real Estate Interest planned a mixed-use retail and residential project, then an office building, and most recently for a large-scale retail space once rumored to have caught the eye of CB2 (Crate and Barrel's "cheaper" offspring). Whatever it is he's bringing to the Logan area, he needs more time, given the economy and the quandary of Central Union Mission. Schonberger entered into a purchase agreement for the property with the Mission in 2006. The developer owned property in Petworth which was swapped for the Mission's 14th street site as part of the sale agreement. Schonberger woudl also pay upwards of $7 milllion for the Logan property. The final sale, however, is contingent on the Mission's ability to relocate its shelter services. Initially the Mission sough to build a 100-bed homeless shelter in Petworth, to which neighbors responded with a resounding no-thank-you-very-much. With Petworth no longer an option for a shelter, the Mission sought to make a deal with the District for the Gales School, only to be derailed by an ACLU lawsuit. At this point, Schonberger's plans for the former automobile showroom began to unravel. Now the development team is going before the Board of Zoning Adjustment to ask for an extension to various zoning exceptions granted in May 2008. Some of the exceptions related to the historic building on site, which the Historic Preservation Review Board ruled had to stay, meaning future development will entail a reuse of the former auto showroom, likely with additions. 

 The developer also seeks to renew the exceptions to the arts use and design requirements to allow a mixed-use residential and retail development despite the requirements that 14th street have a balance of uses that favors the Arts. Any project will be required to have ground floor retail, though the rest is up for debate.A source familiar with the project indicated that no decisions had been made on the eventual use of the property (i.e. commercial or residential) since the project is "so far from development" and the Mission has not yet relocated. Assuming Zoning grants the extension, the developer will have a year to breathe before having to file for construction permits and another year after that until work needs to be under way. Two years might be enough time to tie of up the Mission's loose ends. To date, DC public records still reflect the deed to the property under the Mission's name. Wonder who Schonberger is rooting for in the new Gales School RFP contest? 

Washington DC real estate and development news

Gales School Update

One law suit and three deadlines later, the District's Department of Real Estate Services (DRES) last week closed out the response period for its Request for Proposals (RFP) to develop the historic Gales School at 65 Massachusetts Avenue, NW. With three responses in hand, DRES will set to the task of picking a winning private company or non-profit to renovate the historic building (circa 1881) and operate it as a homeless shelter, capable of serving upwards of 150 people each night. Previously the District ran the building as a homeless shelter between 2000 and 2004.

DRES issued an RFP in January and twice extended the submission deadline, originally set for February 16th and ultimately enforced last Friday, March 26th. According to a spokesperson at DRES, three responses came in by last Friday for the Gales School RFP. Over the course of the next month, DRES will assemble a selection committee comprised of staff and stakeholders such as a representative from the Department of Human Services. The committee will then request best and final offers and should have a decision by late April or early May.

Though DRES could not release the names of the applicants, there is at least one known entity: Central Union Mission. The Mission's bumpy past with the Gales School boils down to concerns over government subsidies going to religious organizations. The America Civil Liberties Union (ACLU) filed a lawsuit claiming an Establishment Clause violation - i.e. separation of church and state - because a previous agreement reportedly would have netted $12 million for the Mission, which requires homeless men to participate in religious services in return for room, board and counseling services.

David Treadwell, Executive Director of the Central Union Mission said it was his understanding that the concerns raised in the lawsuit were mostly related to cash payments suggested in the previous RFP agreement. With a new RFP, the Mission once again submitted a response, calling for an addition to the building of approximately 5,000 s.f. for a new kitchen and classrooms. Treadwell estimated project costs at $12 to $14 million, the details of which would be left to Cox Graae and Spack Architects of Georgetown.

This time around, the ACLU submitted a letter in February to the Mayor's Office and DRES, requesting a deadline extension arguing that given "the unreasonably short time frame for responding to the RFP, it appears to us that the RFP process has been designed to provide an insurmountable advantage to the Mission and its religion-infused shelter services," implying the ACLU will again oppose the transaction.

The Mission's offer will depend on its ability to raise funds for a project that ultimately will not be a revenue creator. The organization could face another lawsuit threat if the deal is perceived to contain any sort of subsidy, a problem that non-religious organizations would not face. At this point it is unclear whether or not the other applicants are secular providers of homeless services.

Arthur Spitzer, Legal Director of the ACLU, said his organization has no problem with religious organizations running social services. The problem is when those services are only offered in exchange for "hellfire and brimstone" proselytizing services. Ultimately, Spitzer said, he "hopes they have made this into a fair process" and if it is, and if the Mission wins, then "perhaps that will be OK."

The DRES will weigh the operational and financial benefits proposed by the responses to determine what is "in the best interest of the District." DRES is looking for an organization with a track record of past successes in providing homeless services, which could ultimately mean a religious entity as long as the deal is not so sweet as to raise the ire of the dogged ACLU.


Washington, DC real estate development news

Gales School Waits for Submissions

The District's Department of Real Estate Services has extended for a 2nd time the submission deadline for development of the Gales School, from March 18th to March 26th. Just two weeks ago DRES moved the deadline from February 16th to mid March. While the Department would not comment on the extension, bets are on that the District is waiting for the Central Union Mission, which has not yet submitted its bid.

The District Columbia originally announced the RFP for a new homeless shelter January 25th, for which the Mission had been a strong contender since discarding its designs on Georgia Avenue. David Treadwell, Executive Director of the Mission, says the non-profit is getting its paperwork together but has not yet submitted its plan to the District. Treadwell said its submission would allow for an expansion of its 135-bed facility, now in Logan Circle, by adding up to 5,000 s.f. of space in the rear of the property. The RFP requires a homeless shelter with at least 150 spaces; Treadwell said the Mission would "hope to provide more than that," while relocating administrative offices to another, less expensive site.

"This is a very expensive project," said Treadwell of the construction that would have to retain the existing facade, details of which would be left to Cox Graae and Spack Architects of Georgetown. The Mission views the space as compelling for its prime downtown location, a neighborhood it believes is underserved. As for the last confrontation with the ACLU, which targeted the deal because of what it perceived as a government's endorsement of religion stemming from the Mission's Christian teachings, Treadwell hoped for a better outcome this time. "This was never a done deal, despite their contentions. We have no desire to tangle with the ACLU."

Washington DC real estate development news

Gales School Delay

The District of Columbia announced last week a delay in its procurement of bids to redo the historic Gales School. Just three weeks ago the District issued a Request for Offers for the property, located near Union Station and once nearly turned into a homeless shelter. The new timeline extends the submission deadline from February 16th to March 18th. Asked about the reason for the delay and whether any applications had been received, staff at the Department of Real Estate Services would only point out that they have a website to answer questions, a likely indication that they have not yet been overwhelmed with interest.

The city had been close to a deal with the Central Union Mission, which wanted to use the property for a homeless shelter, but the agreement was torpedoed by the ACLU.

Washington DC real estate development news

Central Union Mission Pursues Gales School, Again

The District has issued a Request for Proposals to revive the Gales School at 65 Massachusetts Avenue, NW. Officials must be hoping for a better result than the previous efforts to develop the building shell, a swap with the Central Union Mission for its land at 3500 Georgia Avenue - a site that might now be part of the Park Morton Development. The announcement indicated DC was seeking offers from private companies and non-profits to renovate the historic building (circa 1881) and operate it as a homeless shelter, capable of serving upwards of 150 people each night. The RFP is the first sign that the furor over previous efforts have subsided, and the dilapidated building will once again provide services to the city's homeless.

The District ran the building as a homeless shelter between 2000 and 2004. In the proposed trade, DC would have gained the Georgia Avenue property and the Mission would get use of the school as a shelter, plus an additional $7 million. But the exchange was derailed by an America Civil Liberties Union lawsuit claiming an Establishment Clause violation - i.e. separation of church and state - because the trade would, according to the suit, result in a "net gain" of $12 million for the Mission, which the ACLU objected to because the Mission requires homeless men to participate in religious services in return for room, board and counseling services.

In the face of the lawsuit, the Mission proposed to move the shelter to Georgia Avenue, only to face fierce community opposition to a homeless shelter and more opposition when the plan changed to a mixed-use residential and office project. That changed in October when DC Officials announced that the development team of the Park Morton Project, Park View Partners (Landex Corp., Warrenton Group and Spectrum Management), would be absorbing the Central Union Mission Property as part of Park Morton, though Park View has not yet solidified that agreement with the Mission. (Image below at left)

David Treadwell, Executive Director of the Central Union Mission, said that the deal with Park View Partners is a "long-term contract" that cannot be finalized until negotiations between the District and the developers are completed. That said, the property is "off the table as far as a swap with the government goes" said Treadwell. With the swap option gone and the $7 million spent long ago elsewhere, the Mission will now compete for the Gales School. Treadwell said it was his understanding that the concerns raised in the lawsuit had more to do with the cash payments than with the land swap, so the Mission will submit a response to the Gales School RFP.

Treadwell added that he hopes the new proposal will "work for everybody, that is fair to everybody and acceptable to the community" because the Gales School is a "great location for serving the poor and the homeless." Still, the Mission's offer will depend on its ability to raise funds for a project that ultimately will not be a revenue creator, and which may be torpedoed again if perceived to contain any sort of subsidy, a problem that non-religious organizations would not face. Treadwell said the Mission's offer will likely call for an addition to the building of approximately 5,000 s.f. for a new kitchen, classrooms and storage space to serve 150 or more men a night. The project will likely cost $12 to $14 million, "we are entering with fear and trepidation," said Treadwell.

As for the lawsuit, Treadwell said he cannot speak for the ACLU or other parties of the suit as to whether the new arrangements and changes to the original plans will have resolved any concerns. The Gales School was designed by Edward Clark, the Architect of the Capitol, and named for DC's 8th Mayor.

Washington, DC real estate and development news

Central Union Mission's Development Blues

The hotly contested Central Union Mission property on the corner of Georgia Avenue and Newton Street in northwest DC had its day at the DC Board of Zoning Adjustment (BZA) last Tuesday. Original plans to move the Christian men's residential facility (read: homeless shelter) from its dated digs in Logan Circle to Georgia Avenue met significant community resistance, leaving the Mission to scrap the homeless shelter idea and design a new building with mixed-use residential and office space instead. The BZA ultimately approved the new plans for a mixed-use project, on the condition that the Mission not modify its approved use. Having relented to community pressure over the proposed shelter and without any prospective buyers or development partners, the Mission worked with designers at Cox, Graae + Spack Architects to develop a more conformist project. The new plan calls for 37 residential units affordable to residents with incomes of 50% - 80% AMI (about $45,000 - $80,000). The building will include a small bay of ground floor retail on Georgia Ave., an additional 3,700 s.f. of office space, which may be reserved for Mission administrative uses, and 27 parking spaces in a below-grade garage. The community has vociferously opposed building a homeless shelter on the site. At a September ANC meeting, the Mission assured residents that the project would no longer include the shelter, but would rather provide low-income housing and retail/office space. ANC-1A08 Commissioner Cliff Valenti appeared at the BZA meeting to reiterate that the ANC's approval was conditioned on removal of the homeless shelter from the Mission plans. The ANC remains anxious over the property, despite the Mission's assurances, largely because the proposed alternate location for the shelter at Gales School (pictured, at right) near Union Station has now become a legal issue. Originally, the plan was for a land swap in which the city would gain the Georgia Avenue property and the Mission would get use of the school as a shelter. But the exchange was derailed by an America Civil Liberties Union law suit claiming an Establishment Clause violation - i.e. separation of church and state - because the property swap would result in a net gain of $12 million for the Mission, which requires homeless men to participate in religious services in return for room, board and counseling services. With the swap in doubt, the ANC demanded, and now received, a formal prohibition of the shelter. With their tenancy in Logan up and their Mass Ave location in doubt, it seems the Mission itself may now be in need of a home.

Washington DC commercial real estate news