DC Officially Gets its Convention Center Hotel

Washington DC Mayor Adrian Fenty will hold a very public ceremony this evening to officially ink the legislation that will kick-start, finally, the District's Convention Center Hotel. In a 5:30pm ceremony, the Mayor will sign the New Convention Center Hotel Amendments Act of 2009, granting authority to spend $182m in TIF funds and $35m in bonds to go toward the construction, operation, and maintenance of an 1160-room, 14-story hotel opposite the lonely Convention Center. Technically, the bill amends the Washington Convention Center Authority Act of 1994 to further fund the Washington Convention and Sports Authority (WCSA), which will own the hotel, and instructs the WCSA to contract Quadrangle Development to get it built, and with Marriott to operate the new hotel. The Act authorizes Tax Increment Financing (TIF) and the issuance of bonds, to fund up to $206m in construction and operational costs. The remainder will be paid for by private developers. Funds derived from bonds and TIFs will go solely toward hotel expenses, and not into DC's General Fund. The District government has actively conspired to get the new beds as a rebuttal to National Harbor, which hosts a larger convention center and five, count 'em, five hotels surrounding it. Not to mention that a nice river runs by it. But back to DC, where the massive hotel will serve the convention center, and ensure the success of the convention center. Of course, it was the convention center itself that was supposed defibrillate the moribund Shaw neighborhood and spark development of the area, expectations that many of the convention center's original backers feel have not been met. Officials have maintained that construction could start as early as October, with about a three-year time frame for completion. Plans for the hotel went through many iterations before today, beginning with an even more ambitious plan that would have stretched the hotel over L Street and onto the next block for more than 1400 rooms. The city had also pursued a public-financed option that would have committed the Authority to picking up the $530,000,000 tab in full. The current version incorporates the historic American Federation of Labor Building (pictured) into the Marriott, which will otherwise overtake a swath of surface parking lots. The hotel will become the third largest in DC, and fourth largest in the region. The largest, at 2000 rooms, remains the Gaylord, at National Harbor.

Washington DC retail and commercial real estate news

Alexandria's Eisenhower Project Close to Approval

After over four years of jumping through bureaucratic hoops, Lane Development, LLC's sizeable four-tower, mixed-use project in the Eisenhower Avenue section of Alexandria, Virginia, is nearing the home stretch for city approval. After giving initial approval June 13th, Alexandria government planning staff lauded the architecture and landscape design destined for the intersection of Mill Road and Eisenhower Avenue, saying the project has the makings of a "landmark building" for Alexandria. Now comes the largely administrative process of final site plan review, when developers incorporate requested changes into their plan and resubmit it to the Planning Commission and City Council for the final word.

One of the conditions for final approval requires the developer to work with the City and the Alexandria Redevelopment and Housing Authority (ARHA) to consider providing 16 public housing replacement units, rather than the proposed affordable units. Additionally, Lane will have to create a Transportation Management Plan (TMP) fund, based on the goal of reducing single-occupancy vehicles by 45%. The TMP translates into a built-in fee per unit and is meant to act as a disincentive for driving; if the building occupants are able to reduce single-occupancy vehicles by more than 45%, the fee will be reduced. The idea behind the TMP is to encourage the use of public transportation, given the proximity of the Metro station.

The entire development is being designed by James Wright of Lee Harris Pomeroy Architects. The buildings will weigh in at 22 stories and 19 stories for the residential towers, and at 15 stories and 13 stories for the office towers, the combination of which will include a 515-space parking garage, 5,700 square feet of ground floor retail and 485 residential units. Not small beans for a DC area project.

Construction dates depend on how quickly (or not) Lane works to push through their final site plan. According to Natalie Sun, an Urban Planner for the City of Alexandria, even with final site plan approval, if there is no "substantial construction" the new approval would not expire until June 13, 2012. Which may, just possibly, allow enough time for the commercial and residential markets to correct.

Inclusionary Zoning: DC's Mandatory Subsidized Housing Rules Kick In

The District's controversial new "inclusionary zoning" rules come into effect this week; rules that come with a raft of new regulations, a hefty price tag, an outsourcing of social services from the government to a private industry, and a potential to drag down land values that are already plummeting. That, anyway, is the fear many land developers feel about the District's new inclusionary zoning rules. Beginning August 14th, Washington DC's lengthy new rules begin applying to housing providers, requiring subsidized housing in new projects of 10 or more units, and laying out a regime for building, tracking, verifying, and regulating housing going forward. While the legislation - the Mandatory Inclusionary Zoning, or "IZ", to some - has some exemptions by neighborhoods, zoning code, and building type, it is expected that most new apartments and condos will be required to offer moderate and low income housing going forward. DCMud provides the following summary for how the new rules will apply: 

Property Type: The new rules require that new buildings (or groups of homes) with 10 or more units, or existing buildings of 10 or more units that are increased in size by 50%, provide 8 to 10% of new units as affordable (or up to 75% of the bonus density, whichever is greater), depending on construction type and zoning district. Exemptions exist for student housing, hotels, and embassy housing. 

Beneficiaries: Inclusionary units will be set aside in all buildings that fall under the mandate of the new regs, for "moderate-income households" - applicants making up to 80% of the Area Median Income (AMI). In some zoning districts, 50% of those inclusionary units will be reserved for "low-income households," or applicants making less than 50% of AMI. Current income levels, based on HUD's figures, mean that a family of 1 would have to make $35,950 or less to qualify for the 50% AMI rule, and $57,500 for the 80% qualification. A family of 4 would have to make no more than $51,350 and $82,150, respectively.

Where: The MIZ rules were intended to apply in most of the District, with exemptions for low-density neighborhoods for which additional density would be out of character, according to the District's zoning map, i.e. zone R-2 through R-5-D, C-1, through C-3-C, CR, SP, and W-1 through W-3. Because developers receive a 20% density bonus for complying with the regulations, historic sections where added density would be inappropriate are excluded, including portions of downtown, Dupont, Georgetown, Anacostia, Southeast Federal Center, and Eigth Street (SE) Overlay. 

What: Builders must provide units of comparable size, unit mix, "exterior design," "finish," "materials," and "interior amenities," while still allowing for "less expensive materials" in affordable units. Inclusionary units must be in the same building, unless a special exemption for off-site construction is given. 

How to find them: Owners of subsidized units will be required to notify the Department of Housing and Community Development (DHCD), which will keep a database and, for each new housing unit, make a determination of the appropriate sale or rent price, and conduct lotteries in the event of over-enrollment for new housing. Purchasers of subsidized condominiums will be required to continually verify their resident status, but will not have to re-qualify for income. Washington DC residents will have some priority over non-DC residents, but the latter will qualify. The DC government has issued a preliminary website for guidance, and will help potential occupants search online for available units. The regulation of the new regime will be administered by the Department of Consumer and Regulatory Affairs and the DHCD. And while the regs may trigger fears of additional bureaucracy within the DC government, according to Sean Madigan, spokesman for ODMPED, the new system is intended to use existing facilities to govern the process without adding a new layer of staff. Madigan says the rules will have a "phased introduction" that will be put into place over the next few months as plans gel into administerial mechanisms. The new rules have been a long time coming, having been debated for years when finally adopted by the Zoning Commission on May 18, 2006. The DC City Council codified the rules in the same year in legislation that required the Mayor's office to issue new rules on the subject. But amidst drooping development prospects, those rules were not issued until May 14, 2009, to the consternation of affordable housing advocates and the relief of housing providers. Under the codifying legislation, those rules would take effect 90 days after publication.

Washington DC commercial real estate news

Georgia Avenue School Demolished for Mixed-Use Project

Government officials chose the hottest day of the year to begin demolishing another public school, this one on Georgia Avenue. The 36-year-old Bruce Monroe Elementary School and recreation center, at 3012 Georgia Avenue, NW, was closed this June to make way for a mixed-use project including, most likely, an updated school, and yet another feather in the cap of Georgia Avenue.

According to ODMPED Communications Director Sean Madigan, the Mayor's office will issue an RFP "in the next few weeks" to select a developer to turn the 119,000-s.f. site into what "could include new housing and retail on the site as well as a new school." DC Public Schools’ Office of Public Facilities Management has been tasked with overseeing the school's development, while ODMPED and the DC Department of Small & Local Business Development share the responsibility of seeking a partner for the project’s mixed-use component.

The task of knocking down the existing school falls on General Contractor EEC of DC, which handled asbestos and PCB abatement, and The Berg Corporation, which will handle actual demolition. According to a source from Berg, 95% of the material (by weight) on the site will be recylced, a large portion of which is brick that will be ground and used for structural backfill. Demolition is expected to take about 10 weeks; the Mayor's office had initially predicted the school would be ready for the fall of 2011, but says that now seems unlikely.

Several shootings on the site in 2007 prompted Mayor Fenty to undertake additional neighborhood improvements and evaluate the state of the school. Most of Bruce Monroe’s former student body and staff have been removed into Park View Elementary at 3560 Warder Street, which will in turn close once Bruce Monroe is ready.

Washington DC real estate development

Manna Plans 24 New Condos in Anacostia

On August 17th, the DC Department of Housing and Community Development (DHCD) will hold a public hearing on the disposition of the six townhouses on W Street, SE in Anacostia. Barring the unexpected, the properties will transfer to non-profit Manna, Inc, which offered $200,400 following the Solicitation for Offers DHCD issued in July of 2008. Manna's plans, designed by an in-house team, preserve the architectural integrity of the exterior walls, but execute a gut rehab of the interior. The end result will be 24 two-bedroom, two-bath for-sale units. The units will be approximately 900 s.f. each; four will be "accessible." A quarter of the units will be made available to households earning 60% or less of the area median income (AMI), the remaining 16 units will be available for households earning 61-80% AMI. Manna expects to begin construction in the first quarter of 2010. The project will be executed in two phases, and George Rothman, Manna President and CEO, estimated completion 12 to 18 months after the start of construction.

Washington DC commercial real estate news

Arbor Place: A Pulse Detected

Abdo Development's Arbor Place project, an unusually large outer New York Avenue project which received initial approval in February 2007, is back on the boards. At a hearing before Washington DC's Zoning Commission on July 30, 2009, Abdo asked for consolidated approval of a Planned Unit Development (PUD) and related zoning map amendment from C-M-1 to CR Zone district for the same land. In a move that clearly reflects the financing constraints many developers are facing, Abdo has significantly downsized the planned development and is working with DC to subsidize the first phase of construction (at least). The new Arbor Place is a planned mixed-use community on the colossal 17-acre triangle bordering New York Avenue, Bladensburg Road, and Montana Avenue, NE, (click on map, above) a section of real estate now dominated by warehouses and dilapidated commercial buildings. 

The site counts the opposite National Arboretum as an advantage, but sits on a challenged stretch of New York Avenue sometimes referred to impolitely as "the Devil's bowling alley" for its lengthy sameness, segregated by the CSX lines that run adjacent. The project will also include three new internal roads. The original PUD called for approximately 3,500 residential units, 148,120 sf of retail for lease, 4,294 parking spaces, one acre of open space and an overall floor area ratio (FAR) of 4.98. The drastically smaller new plan offers approximately 1,400 residential units, 1,254 parking spaces, 69,883 sf of retail for lease, 2.71 acres of open space and a less dense FAR of 2.46. In Commission filings, the developers admit "the new application reflects changes to market conditions." Most notably, the new filing changes the subsidized portion of the project from a mere 8% of units to 70% of units. About 25% of those units will now be available to residents at 80% AMI (Area Median Income) or below, and another third would be available to low-income households earning 60% AMI or less, and in some cases 50% AMI or less. The remaining 30% would be market rate. In their pre-hearing submission, the applicants, which still includes New York City-based Broadway Development, claim the "affordable housing component is the PUD's most significant project amenity and public benefit," a fact which underscores the removal of several project amenities, such as expansion of a local recreational facility and on-site health club. 

The affordable housing provision is now the subject of substantial negotiations over workforce housing programs between Abdo and the Office of the Deputy Mayor for Planning and Economic Development (DPMED). The developers will "utilize a combination of direct subsidy and tax incentives to finance and construct the initial phases" of Arbor Place. These financing programs determine the distribution of affordable units in the PUD. Phase I, set to begin approximately two years after PUD approval, will start with two buildings that run along New York Ave. and part of Montana Ave. Every unit in Phase I will be available only to households at or below 60% AMI. Phase II's five buildings run along Montana Ave, New York Ave, part of Bladensburg Rd. and new internal roads. This phase provides 20% of units at 50% AMI and the remaining at market-rate, which the developer intends to price at a level generally affordable to an 80% AMI level. Phase III's three buildings run along Montana Ave and Bladensburg Rd and will be entirely market-rate, which the developer anticipates will generally priced equivalent to workforce housing. The developers expect Phase III to be ready 15 years from the Zoning Commission Order.

Arboretum Neighborhood Association President, Bleik Pickett, submitted a letter to the Commission expressing overall support, but with several key concerns. The original PUD had included a commitment to support and expand the local recreation center, and plans for a health club as one of the retail facilities. Neither offer exists in the new PUD application and residents are concerned about the influx of people without the necessary neighborhood resources to handle it. The letter mentioned that Abdo had expressed interest in a public-private partnership to provide resources for the community, and which it wanted reinstated. 

The Architect and Master Planner for the project is Maurice Walters; Torti Gallas and Jyh-Mei Lee, AIA (Abdo's in-house architect) are project architects. Additionally, Shalom Baranes Architects and Bradley Site Design are the landscape architects. The watercolor renderings were done by ArchiBIM, Inc. The Zoning Commission approved the consolidated PUD application and the Zoning amendments, and has now submitted its recommendation to the National Capitol Planning Commission (NCPC) for review. The NCPC will review the application and send a report back to the Zoning Commission. A final hearing before the Zoning Commission is scheduled for September 14th. Barring any bureaucratic hi-jinx, the application would then be approved. The guidelines for PUDs mandate that the developer has up to two year after approval to apply for a construction permit and an additional year after that to begin construction. If the two year or three year deadlines are not met, the PUD becomes void. The original PUD application is now void, due to the alterations and the above described time lapse. Assuming the Zoning Commission approves the new PUD application on September 14th, 2009, Abdo will have two years from that date to apply for a construction permit and an additional year to begin construction.

Washington DC retail and commercial real estate news

Lincoln Theatre - The Development Show Must Not Go On

A planned sale and development of vacant lots at the Lincoln Theatre now appears to have gotten its curtain call. In a plot that would have bolstered finances for the struggling theater and added desired commercial development to the U Street neighborhood, the District had hoped to sell the vacant lots to developers. According to inside sources, those plans have now been shelved.

In April 2008, Mayor Adrian Fenty announced a Request for Proposals (RFP) for the district-owned property abutting the U Street theater, with a September, 2008 application deadline for the "Lincoln Lots." According to sources in the office of the Deputy Mayor for Planning and Economic Development (DMPED), no developer was selected and the RFP has been pulled for "economic concerns." The DMPED's office will not comment on when the RFP was pulled, how many offers were received, or any explanation for dropping the plans. Other city officials seemed unaware of the Lincoln's status; spokesmen for the Lincoln refused to comment (unless a hang-up is a comment) for this story.

At least part of the impetus for development was the theater's shaky financing, which required annual payments from the District and led to a cash infusion from the District in 2007 to prevent it's imminent closing. Proceeds from development were to seed the theater with extra cash to keep it operational.

The two parcels on V Street total 11,788 s.f. of space in a neighborhood bursting with new and planned development. At the time the RFP was released, the Mayor suggested a hotel or office would be an ideal development to share parking with the theater and provide "flexible event space, including a restaurant-quality kitchen, which would be managed by the theater management." The new structure was meant to help solidify "the Lincoln [Theatre] in the regional cultural market."

**UPDATE 08/10/09** The Office of the Deputy Mayor for Planning and Economic Development sent DCMud the following statement as a follow-up to our post:

The District remains firmly committed to the success of the historic Lincoln Theatre. The U Street Theatre Foundation Board, its Executive Director, and overall team have made significant improvements in the operations of the theatre. Theatre management has formed strategic partnerships with a variety of cultural groups to further enliven the U Street corridor and to make the institution an anchor for the broader community. The District’s issuance of the Solicitation was to intended to provide supplemental support of the theater’s operations. The District’s decision to terminate negotiations with the potential development team last year was made to ensure the public interest in being able to produce that supplemental support. It is anticipated that a Solicitation will be issued for those same properties once the current economic climate changes.

Mount Vernon Triangle Waits for All that Jazz

The Arts at 5th and I will keep Mount Vernon residents waiting for just a bit longer. Donohoe Companies won the right to develop the promised high-end hotel, retail outlets and jazz club in September of 2008, but the District has been negotiating the terms of the land lease for the project with Donohoe. According to Memphis Holland, a Partner at co-developer Holland Development, the group hopes to have a resolution to their negotiations by the end of next month.

Assuming the land disposition is approved by the City Council, the developers can then begin the planning process. Planning will take at least 12 months and construction would not begin until an unspecified time thereafter. The group is not expecting any zoning issues at this time, but in this business, you never know.

The 475,000-square foot development will center around a new 260-room ME Hotel from luxury Spanish hotelier, Melia, and also include a bicycle retailer, hardware store, book store/café and new outlet for the Zenith Art Gallery. One update to the original plan is that the Boisdale Jazz club will likely not be in the hotel, but rather at a location down the street at 5th and K, which Donohoe is negotiating terms for, leaving the in-house space for another restaurant. The building at 5th and K falls under the confines of the Historic Preservation Review Board so the structure would be preserved and renovated for the club and restaurant.

According to Holland, the developers have been in constant communication with the community and once they have approval from the City Council will re-engage the local ANC and the downtown neighborhood association. Zenith Art Gallery recently closed its physical location and is functioning from an online gallery. According to Judith Keyserling of Zenith, the gallery founder anticipates that the new space is still several years off.

It is unclear when the plans for the remainder of the 5th street project will fall into place. For now we know that the hotel, restaurants and retail are in the works, but the music won't be heard for a few more years.

Outdoor Market Coming to Silver Spring

Silver Spring will soon have its own Eastern-Market-style street market, the Fenton Street Market. With two inaugural weekends this fall (September 12th and October 3rd) the market will be open every Saturday, beginning Spring of 2010. The Market owes its existence largely to Hannah McCann, a Silver Spring resident of 12 years who saw the empty lot on the busy corner of Fenton St. and Silver Spring Avenue and thought it was “a shame that nothing happens there." After a few phone calls she had a "Yes" from the property owners and eventually worked with Montgomery County to figure out the rest.
Development of downtown Silver Spring has meant new energy and new businesses, making it hard for some to compete. Ergo, McCann says there is concern that "some of the smaller businesses will be priced out by the new business.” Her plan for the market is to bring unique vendors to the area with the hope of encouraging new small businesses to move into Silver Spring to accent those currently serving the community.
McCann hopes to have a mix of crafts, art, antiques and services, like a Henna artist and an orchid seller who teaches repotting, but has been working with the founders of the Eastern Market and is following their advice to be open-minded about the type of vendors. Timed to correspond with the nearby farmer's market, Fenton Street Market could become a natural next step in a Silver Spring Saturday afternoon.

McCann said she is trying to take care of licenses and insurance and to keep booth space inexpensive. Both 10 x 10 and 10 x 20 booths are available and range from $15 to $25 a day. And really, where else can you rent space at that price this side of Kabul.

The market's hours for the public are 9 AM to 2 PM. Free parking is available in public lots across Fenton Street. Vendors should plan to arrive at 7 AM.

Judiciary Square Apartment Building Opens

The Judiciary Square corner of Washington DC's Penn Quarter now has one more residential building, and one less vacant lot. The Hanover Company, a private, Houston-based real estate firm, introduced its latest apartment building in Penn Quarter last week, adding a touch of high-end to the downtown rental market. The Ashton at Judiciary Square, at 750 3rd Street, NW, opened its doors as one of downtown's few upscale buildings, and with construction nearly complete, units will be ready for occupancy beginning this week. The 12-story glass building holds just 49 necessarily spacious apartments and a parking garage, with amenities to match: marbled foyer with inlaid tile, 24-hour concierge, NYC-worthy interior design, nearly 10 foot ceilings, and a choice of interior styles throughout the building. The rent will set you back a bit - $4332 per month to start (less if you factor in the standard one-month-free deal) - but the leasing team is already scheduling moving vans for its first occupants - "finance types, athletes, and government employees," apparently for those GS's with a higher than average per diem. The Ashton comes furnished or not, short-term (3 month) leases or long, and with views ranging from stunning Capitol dome to, well, a peek at much more local architecture. Occupants also get a separate suite for guests, though you won't need it if you take one of the top floor suites, with 3 bedrooms, 2 baths, 2700 s.f., and views from far southeast to Rosslyn and everything in between. All that at only $10,817 per month. And situated near the on-ramp to 395, you could make it to a Nationals game in 5 minutes flat, or just bug out of town in a hurry. Hanover hired WDG Architecture for the design, but reports performing the remainder in-house, from interior design to construction. The Ashton is the nationwide developer's first entrant in the DC Market, but it will soon follow up with the Crescent at Falls Church, scheduled to open next May. Hanover purchased the empty lot from Abdo Development in July of 2007 after Abdo cleared the land of a hotel in order to construct a condominium that never made it past the drawing board. That means the building was designed, planned, and built in just 25 months, something local developers should envy. Abdo retained the land next door, along with a plan for a large office building. The site is 3 blocks north of the Judiciary Square Metro.

Washington DC commercial real estate news

LeDroit Park School Gets Hammered

In a move envied by adolescents everywhere, DC Mayor Adrian Fenty, joined by LeDroit Park community members, will begin knocking down a public elementary school today at 10:45am. The Gage-Eckington School at 2025 3rd St., NW, is being scuttled in favor of a 3-acre park, beginning with today's wrecking ceremony.

Just last month DC’s Office of Property Management (OPM) had maintained their devotion to move city agencies out of leased space and into abandoned public schools. But it seems that a lack of parking and reported $18m in renovation needed to rehab the space, not to mention its architectural heinousness, has led city officials to conclude the city is better off without it.

A new park, designed by Lee and Associates, will include a dog park, a children’s garden, a playground and incorporate the existing community garden at 3^rd and V Streets, NW. Construction of the park is slated to begin in October. Gage-Eckington closed its doors in mid 2008, in a move expected to save DC Public Schools some $659,000 in fixed costs per year.

Washington DC real estate development news

New Public Housing and Mixed-Income Units in Alexandria

On August 7th, Alexandria Mayor William D. Euille, Redevelopment and Housing Authority (AHRA) Executive Director Roy Priest, and developer EYA will break ground for the construction and rehabilitation of 102 homes off West Glebe Road near Mount Vernon Avenue. This is the second public-private partnership between EYA and AHRA.

On the 800-block of West Glebe Road, 48 new apartment homes will replace out-of-date public housing. On the 900-block of Old Dominion Boulevard the developer plans to rehabilitate two apartment buildings and construct a new apartment building and 18 for-sale homes, for 54 units. Ten of the for-sale homes will be targeted for workforce families. "The combination of rental and homeownership units will assure the continuing affordability of housing in Alexandria,” said ARHA Executive Director Priest.

According to Jennifer Hebert of EYA, two or three-bedroom workforce homes (pictured above, right), ranging in size from 1,024 to 1,416 s.f., will be priced from the low $300s, with a financial subsidy from the City of Alexandria to the buyer. The planned two or three-bedroom market-rate townhomes (pictured at left), ranging in size from 1,920 to 1,944, will be priced from the upper $400's.

New Lending Rules to Slow Closings

New changes under the Truth in Lending Act (TILA), known as "Regulation Z", went into effect on Friday, and could have the effect of dragging out settlements. The rules, affecting mortgages and home equity lines of credit (HELOCS) for primary and secondary homes, require a disclosure and good faith estimate (GFE), but the changes add a seven day waiting period after disclosure before the lender can fund the loan, giving buyers time to ponder the disclosures.

GFEs were always required within 3 days of a loan application, but now if the annual percentage rate (APR) on the final loan changes by more than 0.125 percent, new disclosures and GFEs are required, and the 7-day cooling off period starts anew. Because a change in the interest rate or addition or reduction of points could change the loan APR, any change in mortgage terms could force the buyer to delay settlement by a week. The only exceptions will be for a "bona fide financial emergency;" presumably the agent's need for the settlement check will not qualify.

Reg Z rules were proposed by the Board of the Federal Reserve System, which governs TILA, as part of the implementing regulations for the Emergency Economic Stabilization Act of 2008 and Mortgage Disclosure Improvement Act of 2008, which passed Congress last October and July, respectively, during the waning days of the Bush administration as it found regulatory zeal in the economic crisis. Many financial institutions opposed the regulations as delay-of-game, while consumer groups supported the waiting period and the rule that exceptions be "tightly circumsribed."

Drama Over Takoma Theatre

There's a new drama going on at the Takoma Theatre, but its not the theatrical kind. The Takoma Theatre Conservancy is pitted against Milton McGinty, the building's long-time owner, over the future of the Theater as either an arts/cultural center or an apartment building. The Conservancy has been raising funds for the purchase and maintenance of the theater, but McGinty maintains that it is not for sale. Can a preservationists force an owner to sell property? It would give "hostile takeover" new meaning.

The theater, located on the corner of 4th and Butternut Streets in Takoma Park, DC, was built in 1923. Architect John J. Zink designed The Takoma and many other theaters in the DC area, including The Uptown and The Atlas Center for the Performing Arts, which still serve DC neighborhoods. The DC Historic Preservation Review Board (HPRB) designated the building as an historic site.

In February 2007, McGinty submitted a request to the HPRB to raze the building, with plans to replace it with an office building. The Takoma Theatre Conservancy formed in opposition to the application, leading to the HPRB denial of the request to raze the building. McGinty is now working with architect Paul Wilson to design a five-story apartment building. The design would maintain only the facade and marquee of the original building, and include a new 100-seat theater on the first floor. McGinty and his architect discussed the plans on July 30th at the theater and are hoping to submit it for HPRB review in September.

Having prevented the Theater's destruction in 2007, the Conservancy now seeks to preserve the structure and use it for a community-based art and cultural center to contribute to the revitalization of the Takoma area. Renovation and purchasing costs have been estimated at $6.9 million, with $1 million a year needed to support programming. Nevertheless, the group is confident that they'll be able to obtain grants and funds needed to convert the building; even now they are in the middle of a fundraiser for building acquisition and rental.

So that's a wrap? Maybe not. McGinty placed the property in a family trust to prevent a sale and asserts that he never has - and never will - consider a sale (though at least one news article contradicts that.)

McGinty's decision to build the apartments hinged on his unsuccessful attempt to run the Theatre as an active venue for plays and shows that challenged racial biases. Apparently, the 500-seat theatre rarely filled more than 50 of them. McGinty chides the community as unsupportive and reactionary. In the 11 years he produced plays, McGinty claims that no one from the "Takoma Park area" introduced themselves or offered to help; only now that they want to preserve the theater do they acknowledge his work. "Everyone applauds me, but nobody ever came."

The building appraisal in 2006 concluded the community could not support a theater, so McGinty moved along with the apartment building design and intends to make it work within the constraints of the HPRB; though he told his architect to design the very best building he could and then to worry about HPRB standards.

The battle of wills continues in Takoma. The next act will take them back before the HPRB. Will the HPRB side with McGinty this time or will the Conservancy manage to secure a repeat performance?

*Picture by Loretta Neumann of the Takoma Theatre Conservancy.

Downtown Silver Spring Site Shoots for Green Office Building

In a plot to lure tenants away from downtown, DC, Potomac-based Willco Companies is developing a 13-story, 190,000 square foot, class A office building in downtown Silver Spring, Maryland, at 8621 Georgia Avenue (the corner of Colesville Rd). The goal is to achieve LEED silver status with a green roof (increasingly common in new office buildings in DC). Is there a demand for class A office space in times like these? Willco will certainly find out...

Replacing what is currently a parking lot, the building will top out at the maximum allowed height, 143 feet, and will provide 275 parking spaces in its five-story parking garage - one level below, four above ground. Proximity to the metro was a factor in the plan which offers 40% fewer parking spaces than allowed at max; an effort to promote mass transit and reduce local traffic. The remaining 8 stories above the garage will be the office space.

In addition to trying to secure an anchor tenant to fill the majority of the office space, Willco is trying to bring in a restaurant and another service-oriented retailer for the planned 6,000 square feet of retail on the ground floor (featuring two-story ceilings). Richard Donnally, the lead architect on the project and Senior Principal at Donnally Vujcic Associates, indicated that the developers are in talks with a "few firms," but nothing is secured and in writing. Ditto on the restaurant.

The team has submitted its site plan to the Montgomery County Department of Parks and Planning. Wes Capps, an Engineering and Construction Supervisor at Willco, said they anticipate a 2011 completion date assuming the approval process moves along without any issues.

LEED Gold for Monument's 55M, Southeast

Monument Realty has been awarded an environmental gold medal; Gold LEED status, that is, on its Half Street, SE office building. Coming on the heels of recent set backs including the Watergate foreclosure and auction and the bankruptcy of financing partner Lehman brothers, the news had to be a welcome respite from the negative media glare accompanying the Watergate auction.

The Gold status, the second highest rating in the system, was awarded by the U.S. Green Building Council (USGBC) and came as a surprise to the developer, which had expected only the Silver certification. "[t]o be awarded Gold is a true testament to the hard work that all the team members put into this project,” said Michael Darby, Principal of Monument Realty.

55 M Street, a Class A commercial office building in the heart of the Capitol Riverfront neighborhood - and the official pedestrian entrance to the ballpark - features 275,000 s.f. of office space and 13,000 s.f. of ground floor retail directly above the newly expanded Navy Yard Metro station. Architect Davis, Carter, Scott included environmentally conscious design features such as a green roof and an LID (Low Impact Development) streetscape concept that captures rainwater to irrigate street trees and plantings and reduces storm water run-off. Monument has yet to begin work on the residential portion of the block, for which Lehman was a partner, and has no immediate plans to add to the residential stock of the neighborhood.

The Floridian - Still in Limbo

In May, Kady Development notified all potential purchasers and current owners of the Floridian, the Shaw condo project at 919-929 Florida Avenue, that interested buyers were going to have to wait a hot second. The owner was having problems with the lender - and by problems it meant a lien and lawsuit, preventing buyers from settling on their purchases. At the time, the developer hoped it would all be resolved within a month. But, now that its allllmost August, not much has changed.

Gerard DiRuggiero of Urban Land Company was concise in his answer to our inquiry. "The developer is having problems with the lender. We still have tremendous interest in the building. It appears to be one of the more popular buildings in the city as so many real estate agents keep bringing people who want to buy. And that's the update." Click.

In June, DiRuggiero said they planned to give buyers weekly updates. Hopefully potential buyers and current residents are getting more details in their updates on the Floridian's status than DCMud.

ANC Special Meeting: Residents to Voice Opinions on Minnesota Avenue Project

Want to see a developer chided by development-hungry residents? Over pedestrian safety? The ANC-7D meeting Friday evening is your chance. Last October, the District government chose Donatelli Development to develop a 5-acre parcel at Minnesota Avenue and Benning Road. The $108 million mixed-use project boasts 40,000 square feet of retail space, 375 affordable housing units and 60 market units. Representatives from local ANCs promise a thorough review of Donatelli's project presentation.

ANC-7D Chairperson Willette Seaward said that despite the city's award of the project and subsequent land disposition review, there was no "official" ANC support. Seaward said she believed Donatelli had met with residents only once after being awarded the RFP last October and failed to "engage the community."

The primary issues are traffic congestion and pedestrian safety at the intersection of Minnesota Ave. and Benning Road. Resident groups like the Coalition for Smarter Growth want public easement and right-of-way for a possible future street connection that would extend Minnesota Ave. along the Metro tracks and add an intersection to reduce congestion. Neighboring ANC7C04 Commissioner, Sylvia Brown was frustrated that prescribed changes in the Minnesota Avenue Great Streets plan, such as the Minn-Benn Phase 2 Benning bridge access road, were not implemented in Donatelli's plan.

Commissioner Seaward said residents are also concerned about not having enough market-rate housing necessary to attract high-end retail. Additionally, the community wants a binding benefit agreement to include public green space, internships and job training for residents or funds for local community centers. Commissioner Brown said the community wants to shed its reputation for being opposed to everything by working with the developer to find a solution.


According to Chris Donatelli, President and CEO of Donatelli Development, the project is not going through the PUD process, but they are working closely with the city on the plan since it is part of a public-private partnership. Donatelli cited the community spaces (think NGO offices) already included in the plan and modifications that added a for-sale component as examples of their collaboration. According to Donatelli, the July disposition hearing was the first time the developers were made aware of community concerns over right-of-way. At that time, DC Council Members asked the developer to consider including the right-of-way. Donatelli said they are meeting with DDOT and in the end are pretty flexible, "you always want to have community support."

We'll see what happens when Donatelli's team presents their project to the community this Friday the 31st at 6:30 in the 6D Police Station Community Room at 100-42nd St NE. It guarantees not to be a dull evening.

Church Maximizes Rhode Island Ave / Shaw Metro Location

The United House of Prayer for All People is planning another development on one of their many properties, this one on Rhode Island Avenue in Shaw. The applicant is going before the Zoning Commission on September 10th to rezone the property at 625 Rhode Island Ave., NW, from R-4 (short residential) to the C-2-B Zone District. The change will allow for the planned 48.6-foot building, rather than the maximum of 40 ft allowed in an R-4 Zone.

Suzane Reatig Architecture has designed a 32,125 s.f. multiple-family building comprised of 16 units, eight of which will be affordable to households earning 60%–80% of the AMI, with a mix of two and three-bedroom units, ranging from 1,150 sf. to 2,200 sf.

Additionally, there will be 11 surface level parking spaces, open green space at ground level, a green roof, small rooftop deck, and developers will shoot for LEED certification. According to Megan Mitchell, a Project Designer at Suzane Reatig, the firm has worked with United House of Prayer for All People before and was a natural partner in this new project.

The PUD application was first submitted to the Zoning Commission on March 23, 2009, the hearing is set for September 10, 2009.