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October 1999 Events Concerning Development Proposals

As most know the signing of the Exclusive Rights Agreement (ERA) with developers Grid and Horning was delayed at least 30 days from Oct 21. The City gave a number of reasons.

Also another article appeared in the Washington Business Journal about the controversy surrounding the decision.

Finally, immediately below are endorsements for the charrette from 3 citizens' associations.

Gary Imhoff writes:

The Federation of Citizens Associations is the largest city-wide association of neighborhood and community organizations. This is the resolution it passed on Columbia Heights. The Cardozo-Shaw Neighborhood Association has also passed the same resolution, with its name substituted.

Committee of 100 - Proposed Resolution

Whereas, the Redevelopment Land Agency, on September 9, 1999, awarded development rights on parcels it owns on 14th Street, NW, in Columbia Heights (parcels 27 and 29); and

Whereas, that decision is not supported by the merits of the development proposals for those parcels, or by the citizens' testimony given to the Redevelopment Land Agency, and

Whereas, that decision contravenes the twenty recommendations resulting from the citizens' planning process and two charrettes sponsored by the the Department of Housing and Community Development, when a competing proposal before the RLA complied fully with those recommendations;

Therefore, the Committee of 100 calls upon the Redevelopment Land Agency to reconsider and reverse its decision; and

Therefore, the Committee of 100 calls upon Mayor Anthony Williams to use his good offices to ensure that the RLA reconsider and reverse its decision, to ensure that the deliberative process of the RLA be free from favoritism and influence, and to ensure that the RLA respects the citizens' planning process when it reconsiders its decision.

The Committee of 100 is perhaps the most prestigious city-wide citizens organization promoting planning and preservation issues. Following is its letter on Columbia Heights.

1800 Mass. Ave. NW, Suite 600
Washington, D.C. 20036
202-828-4333
Fax 2O2-828-2185

October 25, 1999

Anthony Williams, Mayor
District of Columbia Government
441 4th Street NW
Washington, D.C. 20001

Re: Columbia Heights

Dear Mayor Williams:

The Committee of 100 has been following the progress of the redevelopment effort for Columbia Heights with keen interest. Many of our members and trustees have had an active role in the community's effort to shape this effort in a manner which will support the ultimate quality of life for Columbia Heights. We are extremely concerned that the recent decision of the RLA Board, which effectively turned its back on the community planning effort, will derail what was a promising program, will lead to extended litigation, and will prevent a rapid start for a neighborhood which has long been ready for redevelopment, and now is connected to the rest of the city through a new Metro Station

While the Committee of 100 has not taken sides amongst the developers who sought selection, earlier in the year, when the RLA delayed its decision, we did formally ask that the community planning effort, involving hundreds of hours of professional volunteer effort and the participation of hundreds of citizens, be respected in the selection process. Our request fell on deaf ears.

Recent history alerts us to the need to select a developer who will undertake all of the available properties in the tightly packed new Metro Station area so that a coherent plan will result. The sale value of the land itself is a negligible benefit to the city when compared to the ultimate tax revenue which will result from a flourishing Columbia Heights community.

We ask that you and your staff, and the Department of Housing and Community Development, take steps to hold up the award process, review the adverse impacts of the pending decision, and find a means of proceeding which will meet the carefully expressed desires of the community for a commercial center which focuses on the kinds of retail and service needs which are presently missing in this community. With effective leadership from your office and staff, the historic Tivoli Theater can be restored as some form of cultural center, and created on the vacant Metro property at 14th and Park Road. Finally, it is critical that at least five of the critical properties are developed in a coordinated manner, and at an early date in order to nourish the commercial redevelopment. Columbia Heights can once again have a vibrant community center, but it will take leadership.

We know that you want to take citizen involvement seriously, and tie it effectively into the development and procurement processes, but unless the developer selection process can be made more responsive and accountable to the citizenry, citizens will soon lose hope in the planning process. We stand ready to help in any way we can.

Sincerely,
Tersh Boasberg, Chairman

cc: Andrew Altman, Director Office of Planning
Jim Graham, D. C. Council

Washington Business Journal, October 29 - November 4, 1999, p. 3

Tivoli trials threaten Columbia
By Thomas C. Hall, Staff Reporter

Developers say their struggle with preservationists over the fate of the Tivoli Theater is threatening the city's redevelopment plan for Columbia Heights.

Two of the biggest pieces of the $149 million project are either in jeopardy or changing shape:

A huge retail/entertainment complex proposed by Grid Properties of New York is shifting from the $131 million ice rink and family entertainment project first proposed.

Plans for a new Giant Food grocery may be shelved by the Tivoli debate. The store is part of an $18 million Horning Bros. project that would be built behind the Tivoli's partially restored facade.

District officials put both projects on hold for at least 30 days while they seek a compromise on the Tivoli's fate.

The Redevelopment Land Agency Oct. 21 withheld awarding exclusive development rights to Horning and Grid while RLA board members study new options. As a result, both developers' projects are getting new scrutiny from District officials, competitors and neighborhood activists.

Evolving process

In an open competition last month, the RLA chose Horning and Grid over two other finalists seeking to develop four city- owned parcels near the newly opened Columbia Heights Metro.

But that decision prompted a lawsuit by a neighborhood coalition demanding full restoration of the Tivoli as a performing arts center, an option supported by D.C. Councilman Jim Graham, D-Ward 1.

Graham also is concerned that Grid seems to be backing away from the proposal it submitted.

"They sold us a bill of goods," Graham said. "Now it's like, 'What ice rink?'"

Drew Greenwald, president of Grid Properties, acknowledged the final plan for the project - dubbed DC-USA and patterned after Grid's nearly complete Harlem USA project in New York - may differ significantly from what was submitted for the RLA's approval. But he said that's to be expected in a project of this size.

"I have no clue until months down the road exactly who materializes or doesn't materialize," Greenwald said. "Companies shift, and you wind up with a different guy in the same category - that process has yet to be played out."

Greenwald said Grid's Harlem project initially included an ice rink but wound up with a health club. RLA board members toured the Harlem project before making their final decision on the Columbia Heights redevelopment.

"Whether it's ice rinks, bowling alleys or whatever, we believe some entertainment or recreational component is necessary," Greenwald said.

'Incompatible' projects

RLA Board Chairman Robert Walker said he is unsure whether any delays or changes to the Tivoli/Giant project would adversely affect the DC-USA project planned nearby.

"We'd have to look at that. I don't know if it would work to go forward with just one project," he said.

The debate over the Tivoli, Greenwald said, has nothing to do with Grid's project, but "there are people who are trying to drag our project into the discussion, as a way of getting leverage."

Insisting on full restoration of the Tivoli Theater would be a mistake, said Joseph Horning Jr., executive vice president of Horning Bros.

Horning and Fort Lincoln Realty, another District-based developer serving as minority partner in the deal, have a commitment from Giant Foods to build a two-story, 45,000 square- foot grocery at. Park Road and 14th Street NW, where the Tivoli Theater now stands vacant. The plan also calls for 40,000 square feet of retail space.

Horning said his plan's design is "very tight'' end that no performing arts space could be carved out.

"The two uses are fundamentally incompatible," Horning said. "Putting a theater and a grocery together is like apples and oranges."

Slight Change of Plans

Grid's winning proposal is still a work in progress

Grid's original plan was chosen Sept. 9 over a competing $135 million mixed-use proposal from Forest City Enterprises. At the time, Redevelopment Land Agency board members justified their decision by saying Grid's proposal contained more specifics, including letters of intent from prospective retailers like Old Navy and The Gap.

The plans Grid submitted in the competition for Parcel 27 - the largest of the four Columbia Heights development sites - specified the following:

• A 650,000 square-foot retail/entertainment complex to be called DC-USA;
• A 12- to 16-screen Magic Johnson Theaters complex;
• An ice skating rink, downsized from the Olympic-size hockey rink first discussed with city officials; and
• A health and fitness center.

RLA Signing Delay

As most of you know RLA delayed the signing of the Exclusive Rights Agreement with Giant/Horning and Grid on Thursday Oct. 21. Below are 3 versions of why; one from the Washington Post and two from the mayor's office.

Report Of Delay In Signing As Reported In The Washington Post

Columbia Heights Plan Postponed

A city panel yesterday postponed until Nov. 18 awarding an exclusive development agreement to three developers who have proposed $131 million in construction around the new Columbia Heights Metro station.

Members of the D.C. Redevelopment Land Agency said they wanted extra time to study the matter and to allow for consideration of an arts-related use in the historic Tivoli Theatre on 14th Street NW.

Robert Walker, chairman of the land agency's board, said the board has not changed its original opinion that the team of developers came up with the best proposals, but the delay may "turn down the decibel level" in the neighborhood debate over the controversial project.

Mayor's Press Release As Sent To Councilmember Graham:

Councilmember Graham writes:

I want to pass along the statement from the Mayor on today's RLA decision. I think it is both positive and constructive.

FOR IMMEDIATE RELEASE CONTACT: LINDA GRANT
Thursday, October 21, 1999
(202) 727 - 6224

STATEMENT OF MAYOR ANTHONY A. WILLIAMS
REGARDING TODAY'S RLA DECISION ON COLUMBIA
HEIGHTS DEVELOPMENT

"I fully support the Redevelopment Land Agency Board's decision to take the additional time necessary to fully consider the exclusive rights agreements for the RLA parcels in Columbia Heights while still making progress in moving these important projects forward and achieving our goal of a revitalized community. I have heard from many in the and throughout the city regarding this important development project. Let me be clear: We are a city that is open for business and that welcomes new and much needed economic development, especially in Columbia Heights. However, we must make sure that important decisions, such as this, are made not only quickly but prudently.

The RLA Board needs to conduct further due diligence into the viability of financing and other issues. That is what this time allows. Within the next 30 days, I want to make sure that a planning process for the implementation of the RLA parcels, that brings together our community and development team, is determined and a comprehensive approach to the revitalization of Columbia Heights is undertaken. I also want to commend Councilmember Jim Graham (D- Ward 1) for his commitment, leadership and guidance in this important development.

Moreover, I am extremely concerned and frustrated that our public processes are hurting communities and businesses alike. Very shortly, I will announce a plan to bring rationality to the unpredictability that characterizes the whole system of how we conduct development and planning throughout the city."

Mayor's Press Release As Sent To Dorothy Brizill

Dorothy Brizill writes:

I just received the following press release from the Mayor's office. The Mayor's statement is open to a variety of interpretations, and we need to continue to try to find out what steps the Administration will take, not just to prevent a repeat of the mistake that was made, but to correct the mistake that was made.

STATEMENT OF MAYOR ANTHONY A. WILLIAMS REGARDING TODAY'S RLA DECISION ON COLUMBIA HEIGHTS DEVELOPMENT

"I was informed by the Redevelopment Land Agency Board that it requires additional time to fully consider the exclusive rights agreements for the RLA development in Columbia Heights and to work through some of the community concerns that have been raised about the project. I fully support this decision. Yet it is important for RLA, and the city, to remain committed to moving forward and achieving our goal of a revitalized community. The Columbia Heights community has waited long enough."

"I have heard from many in the community and throughout the city regarding this important development in one of our neighborhoods. I continue to be extremely concerned and frustrated that our public processes are hurting communities and businesses alike. Very shortly, I will announce a plan, in conjunction with my Neighborhood Action initiative, for an effective community input process that will truly shape development and planning decisions throughout the city."

"Let me be clear: We are a city that is open for business and that welcomes new and much needed economic development, especially in Columbia Heights. However, we must make sure that important decisions are made not only quickly but prudently."

"Finally, I want to commend Councilmember Jim Graham (D-Ward 1) for his commitment, leadership and guidance on this issue. He has played a critical role in this process and will continue to do so."