ANC 6D

Minutes

65 I Street SE

October 16, 2006

 

Present:  Commissioners Assalaam, Litsky, Moffatt, Siegel, Skolnik, Sobelsohn, Williams

 

The meeting was convened at 7:10 pm

 

 

 1.    Agenda

Commissioner Litsky said that candidates would be coming to the meeting to address the community prior to the November election, and those candidates at the ward level and higher should be given two minutes to address the body after discussion of any item under consideration is completed.  Commissioner Assalaam objected because there was not going to be a candidate’s forum for ANC representatives as there had been in the past, and this would be biased on one side.  Commissioner Williams said it should be put to the end of the agenda.

 2.    Minutes

Commissioner Assalaam objected to the language of his motion on the Capitol Gateway Overlay Amendment and said it wasn’t correct.   Motion: Commissioner Assalaam moved that discussion of the minutes be moved to the end of the meeting.  Commissioner Litsky asked Commissioner Assalaam for the correct wording for his motion, to be amended to the September minutes.  Motion:  Commissioner Moffatt moved acceptance of the September minutes, as amended.  It was seconded by Commissioner Siegel and passed 5-2, with Commissioners Assalaam and Williams in opposition.

 3.    Community Comment

Ed Johnson spoke in support of PL16-902, legislation which is on the ANC’s agenda, which would mandate negotiations between NCRC and AWC on transfer of the NCRC-controlled land at the waterfront.

Gene Solon spoke about the unacceptability of the Waterfront project design, and again stressed the urgent need for a traffic study for the area.

 4.    Old Business

Square 701

Commissioner Siegel said that the ANC had received an offer from developers to contribute $95,000 to a fund for community benefits in support of alley closings for a matter-of-right mixed use, residential, office and retail project in Square 701, bounded by M, N, 1st and Half Streets in his SMD.  Motion:  Mr. Siegel moved that the ANC support the alley closing in Square 701, with the proviso that $95,000 is given to the community for benefits to be determined.  It was seconded by Commissioner Sobelsohn.

Commissioner Williams said that Commissioner Siegel should not misrepresent what the community will receive and that the 750 sq. ft. that the developer says the alley comprises is worth close to $2 million, and $95,000 does not begin to compensate the community for what the land is worth.  Commissioner Assalaam asked about the community fund into which the money will be paid.  He said the ANC was selling out the future for the children of the community.

Commissioner Assalaam said that too much responsibility was being given to the committee, and it was the role of the ANC to develop a procedure for dealing with alley closings, because the Commissioners know the City, and then pass it on to the Committee.

Mr. Solon said he was surprised at Commissioner Siegel, and believed that further negotiation was supposed to take place.  He said that given Ms. William’s calculation of $2 million, the community should get more than $95,000.  

The motion to support the alley closings was passed 4-3, with Commissioners Assalaam, Skolnik and Williams voting in opposition.

(Commissioner Litsky called on Tommy Wells, candidate for Ward 6 Council, to speak. Commissioner Williams reiterated that candidates should speak at the end of the meeting).  Mr. Wells spoke about the Waterfront development, and tenants’ rights.  He then called on Will Cobb, who discussed his platform of improving schools, better public safety and affordable housing.)

NCRC/Waterfront Associates LDDA

Commissioner Litsky said that the Commissioners, in order, should ask questions and make comments. 

Commissioner Assalaam began by saying that there were no community benefits, that what was being offered, like affordable housing, was mandated by the zoning regulations.  He said they would be tearing down trees and taking land from people who live in Southwest.  He said the mall was originally supposed to be a town center, and it still won’t be for the people who live here.  He voiced his objection on behalf of the children in the neighborhood.  He also said that he didn’t appreciate the threats being made that state that if the land transfer didn’t occur there was the possibility that the land would just sit there and nothing would be built.

Commissioner Williams asked about extinguishing the lease for 584,656 sq. ft., as a 70-year lease worth $5 million for 100% of the land, but NCRC would retain a portion of the land for a significant financial advantage.  Jennifer Budoff, representing NCRC, responded that NCRC owns the land, but Waterfront Associates owns the buildings and controls the development rights.  The lease is currently worth $4-5 million, but the 58,200 sq. ft. that NCRC would keep will be worth $22-30 million, as projected by an analysis of comparable sales in the areas.  She said that existing encumbrances would no longer be on the land, which would go to RLARC and transferred to a LLC (limited liability corporation).  She then asked what would happen if the development did not move forward, and Randy Kenna, counsel at NCRC, said that the agreement has default provisions.  If Waterfront Associates do not invest $50 million cash, NCRC gets the land back.  All the money will be invested—the project will cost $750 million.  It will all be invested by 2014, at which time the residential and retail will be built.  Ms. Williams said she wants to see the construction deadlines.

In answer to another question, Ms. Budoff said that Waterfront Associates have to comply with the PUD, and NCRC will enforce the provisions of the PUD.

Mr. Skolnik asked what the worst case scenario would be, and Ms. Budoff responded that it would be non-compliance with the PUD.  He then asked about the affordable housing provisions of the agreement. Ms. Budoff said there were two scenarios: in the first phase of the development, Waterfront Associates will build all its affordable housing below 80% of AMI; in the second scenario, Waterfront Associates may develop the housing as workforce housing, and NCRC would develop lower income housing on the RLARC site.  David Smith, of Forest City Washington, said that it would still be within the Waterfront parcel. In answer to a question, Ms. Budoff said that there is a 20-year expiration for the affordable rental housing provisions, and a ten-year expiration on home ownership.

Mr. Litsky asked why the District is paying for the pre-apprenticeship program described in the agreement.  Ms. Budoff said that RLARC is paying for it out of program funds, and would be taking care of the training costs.  Waterfront Associates will be hiring the graduates and paying their salaries.

He then asked about the grocery store, and why, if they want to build out a 55,000 sq. ft. space for Safeway, there is the provision that they don’t have to have a grocery after Safeway’s lease expires.  He was told again that they are hopeful of working out a deal with Safeway.

He then asked about 4th Street and what the plans for the Federal park behind the Mall are.  He was told that the park is part of a Federal land transfer bill awaiting Senate action, and the District is moving ahead on the assumption that it will pass.  They will have 90% drawings in one month.  Waterfront Associates could not commit to opening the road, it requires Council action and they have no ability to put the road through the part.  Alternative access would be through Wesley Place.

Mr. Smith said that they are submitting the PUD in November, and that will take about a year, and that construction could start in 2009, or early 2010, the latest being the end of 2010.  They would be available as affordable units until 2024, if the building had a certificate of occupancy by 2014. 

In answer to a question about providing office space and community meeting space, Ms. Budoff said that a letter had been sent to the ANC saying that they agreed to provide that space, and that the ANC and SWNA should let Waterfront Associates know what their needs are. 

Commissioner Moffatt asked about the true value of the land, and was told that there was about $198-270 million worth of land.  He also asked about how dependent the land transfer was on the PUD.  Ms. Budoff was working on the agreement now, but the land transfer won’t take place until after demolition and construction takes place.  He then asked whether it was possible to get a commitment on a grocery, and mentioned the amount of residential development that is going on in the immediate area, including the St. Matthews site.  Ms. Budoff said it is an issue that can be decided by the Zoning Commission.

Commissioner Siegel said that his impression was that Mr. Bressler, a partner in the development, has been a bad landlord in the way managed the land and treated the tenants.  He asked what guarantee that the property will not be mismanaged again.  Mr. Smith responded that Mr. Bressler is part of a partnership and that Forest City has always been a good landlord.

Commissioner Williams said that the value of the lease was $17 million in 2001, and the extended lease is worth $2-4 million.  Ms. Budoff said the $17 million was offered as compensation for extinguishing the lease under the Fannie Mae deal.  Mr. Smith added that the $17 million was for the entire site. Commissioner Williams responded that it’s a good d deal for Waterfront Associates, but not a good deal for the taxpayers.

In answer to a question about what percentage will the LLC and management company be paid, Ms. Budoff responded that she doesn’t know, but it will be competitively bid.  She said that Waterfront has the right to develop right now, and NCRC doesn’t have control over what they do.  In 2002 and 2003 provisions were put in their lease requiring them to do development.  The LDDA says it has to be done in 20 years.

Commissioner Skolnik asked about what would happen if they default, and Ms. Budoff said there can be a termination of the agreement. 

Commissioner Litsky asked about whether there is anything in the agreement that refers to eminent domain.  Mr. Kenna said there is boilerplate dealing with the issue, but no specifics.  Mr. Litsky responded that NCR is compensated and gets the land free if there’s a default.  If there’s a transfer and it’s not build on, and the City chooses to take the land, what happens.  Mr. Kenna said such an occurrence would proceed under contract law, not eminent domain.

Commissioner Litsky then commented on the fact that the sign at the Mall says that there will be 125,000 sq. ft. of retail space, now it’s down to 75,000 sq. ft. including the supermarket.  He reiterated that there just is not enough retail space. He then asked what would happen if the LDDA and the PUD do not conform, and was told that they have to conform.

A community member asked about LEED certification, and how green the development would be.  Mr. Smith responded that they had an environmental consultant and they were looking at LEED certification.  Another questioner asked whether, if taxpayers owned the land, why it is being given away.  And if a grocer store is necessary to the community, NCRC is not acting in behalf of the community.  Ms. Budoff responded that the District and the community are benefiting through new jobs, tax benefits, and the development of undeveloped land.

Motion: Commissioner Williams moved that the ANC oppose the extinguishing of the lease and the transfer of land from NCRC to Waterfront Associates.  It was seconded by Commissioner Skolnik, and passed 7-0.

250 M Street SE

Anthony Noble of Holland and Knight, representing the developer, presented plans for an office building at 250 M Street SE that is part of the Capper/Carrollsburg second stage PUD, which has already been approved.  This is an application for a Capitol Gateway Zoning Overlay design review. The building is a joint venture with the DC Housing Authority (DCHA).  The building will be located across the street from Canal Park, will have 194 parking spaces, 14’ ceilings on the retail level, and will be LEED certified.  It will have a rear service drive, and they have met with DDOT on traffic issues.  Motion: Mr. Sobelsohn moved that the issue be referred to the development committee.  The motion did not receive a second.

Commissioner Williams asked whether the building will generate funds for the District, and Paul Rowe of DCHA said that most of the land was previously public housing, some of which was sold fee simple, and the land for the building is leased to a venture partner.  DCHA has a one-third equity interest in the building, and the annual cash flow will be used to the construction of the one-for-one replacement units in the Capper/Carrollsburg project.  They are using the profits from the land sales for construction.

Commissioner Assalaam asked when DCHA became a for-profit agency, and said that they had torn down the public housing and now the agency doesn’t have the money to put it back.  Mr. Rowe said that they did have the funds, and Commissioner Siegel said that the financing had been planned that way from the beginning.  Motion: Commissioner Siegel moved that the ANC support the design review of 250 M Street SE because it meets the design criteria of the Capitol Gateway Zoning Overlay.  It was seconded by Commissioner Sobelsohn.  Mr. Noble reiterated that it was not a PUD, but just a design review. The motion was defeated 3-4, with Commissioners Assalaam, Moffatt, Skolnik and Williams voting in opposition. 

Motion on Capitol Gateway Overlay

Commissioner Assalaam said that his motion on the Capitol Gateway Overlay Amendment was recorded incorrectly in the September minutes.  The correct wording should be:  Commissioner Assalaam moved that the ANC oppose the Office of Planning Amendment to the Capitol Gateway Overlay because it includes Square 655, bounded by South Capitol, Half, O and P Streets SW, which is the only completed residential square in the overlay, and is exclusively occupied by a thriving community of families and children.  The ANC would support the amendment if that square is removed from the amendment.

 5.    New Business

Square 700/Square 701 Alley Closings

Amy Phillips of Monument Realty, the site’s developer, presented information on these alley closings, which are on the west side of the square between M, N, Half and Van Streets SE.  Monument will be building a 275,000 sq. ft. office building, 350,000 sq. ft. of residential units, and 50,000 sq. ft. of retail.  Construction will begin in January so it will be ready when the ballpark opens.  They will also be building a hotel. The alley is 10,701 sq. ft.  WMATA will get 50% of the alleys, and Monument will buy the FAR from WMATA.  Square 700 will have the residential, 200 condominium units, and 200 rental.  The buildings will be LEED certified, and will have up to 20% affordable housing.  The community benefits they are offering include local and first source hiring, $500,000 contribution to air conditioning at Amidon School, and taking responsibility for the expansion of the Navy Yard Metro stop.  The buildings will be 120’ and 80’ feet tall, with a 12’ setback.  There will be some two-story retail, and 725 parking spaces.  The first Council hearing on the alley closings is scheduled for October 31st, with the second hearing at the end of November.

Motion: Commissioner Sobelsohn moved that the issue of the alley closings be referred to the Development Committee for its review, including information on whether there will be public access to the parking spaces during non-business hours. It was seconded by Commissioner Siegel.

Commissioner Moffatt asked whether the planned expansion of the metro station was part of their responsibility and was told that Monument will do the construction, with federal and WMATA funding.  Phase 1 of the construction will be completed in time for the baseball stadium opening. Commissioner Moffatt also asked about the contamination abatement.  The motion was approved 6-1, with Commissioner Assalaam in opposition.

NCRC Land Transfer to AWC

Commissioner Litsky introduced a resolution (attached) supporting legislation currently before the Council’s Economic Development Committee which would compel NCRC to move forward with the transfer of land at the waterfront to AWC, so that the redevelopment of the Southwest waterfront can move forward. He said that the management contract for the marina has to be renewed as well, and AWC should be doing the review of the existing contract.  The bill, he said, was written by the Attorney General’s office so there would not be wiggle room for NCRC, which has delayed for far too long in effecting the transfer.  Motion: Commissioner Sobelsohn moved that the ANC endorse the resolution supporting Bill #16-902.  It was seconded by Commissioner Skolnik.

Commissioner Williams said that NCRC had usurped the land and should be held responsible for negotiating with AWC. Commissioner Skolnik said that the issue had dragged on for a long time, and that AWC was better than NCRC, which has been dragging its feet. NCRC has held on to the properties and allowed all the bad events to go on at the waterfront.  Commissioner Williams said that it was important to realize that the ANC was being used as puppets, and asked why the Commission was caught in the middle and said that the ANC should not take action until it had someone from NCRC to talk.  Commissioner Assalaam asked why it was mandated to turn the land over to some group that snuck in to take over.  The motion passed 5-2, with Commissioners Assalaam and Williams in opposition.

Liquor License for The Wine Cellar

Paul Pascal, attorney for the Cho family, asked for support for a Class A liquor license for a new high-quality liquor store at 1st and L Streets SE.  It is a two story building next door to the Marriott hotel, and the building currently has a Class B license which is in safekeeping.  They plan to tear down the building and build a well-designed establishment that will sell fine liquors and wines, and may have a sushi bar or a coffee bar as well.  He said that they are willing to sign a voluntary agreement, and he said that he understood that the ANC had to protect its interest and protest the license. 

Commissioner Siegel asked Mr. Cho if he would be available to meet with the community, and said he had polled the seniors at Arthur Capper, who said they did not want anything trashy.  Mr. Pascal said the ABC was not issuing any more B licenses that even McGruders has a Class A license, which means that the liquor has to be locked up during the hours when selling Is prohibited.  Jim Carroll of the Marriott Hotel next store to the proposed establishment said he was concerned that it was going to be a low-class place, but that he was feeling a little better after hearing the presentation. Mr. Pascal said they would be happy to meet and work with the hotel people.

Motion:  Commissioner Siegel moved that the issue be referred to the Alcoholic Beverage Committee to develop a voluntary agreement with the owners of The Wine Cellar.  It was seconded by Commissioner Sobelsohn, and passed unanimously.

Motion: Commissioner Siegel moved that the ANC protest the license application of the Wine Cellar on the grounds of “peace, order and quiet” so that a voluntary agreement can be worked out, and that Commissioner Siegel represent the ANC in the matter.  It was seconded by Commissioner Sobelsohn and passed 7-0.

Eisenhower Memorial

Carl Reddel and Emily Nye, of the Eisenhower Memorial Commission, and Steve Lorinze, the Memorial’s architect, made a presentation of plans for the memorial, which will be located on Maryland Avenue SW, on a four acre site in front of the US Department of Education.  The memorial will respect a series of design guidelines established by the Fine Arts Commission, including that it will be a “green:” site, that it will respect the vistas, and will suggest the continuity of Maryland Avenue through the site. 

Commissioner Skolnik asked about the future of the community garden currently located at the site and was told that they were looking at other reservations in the area to which it can be moved.  There were also questions about parking, and the Commission was told that they will be creating fourteen metered spaces, and the memorial is located near a hotel with an underutilized garage. 

 6.    Treasurer’s Report

Commissioner Skolnik gave the treasurer's report for September 11-October 16.  A copy of his report is attached to these minutes.  ANC 6D has $42,821.64 in current funds.  The savings account has $5,117.70, including an interest payment of $2.52.  The report includes expenses submitted for approval of two months of staff salary $554.10 (Check #279), and $554.10 (Check #280), Verizon, for telephone services, $87.28 (Check #281) and $93.74 (Check #282); and Best Buy, for a printer and print cartridges $596.35 (Check #283) Motion:   Commissioner Skolnik made/Commissioner Moffatt seconded a motion to approve the June-July report and to authorize payment of the expenses. The motion passed 6-0. (Commissioner Williams had left the meeting.) 

 

Motion: Commissioner Skolnik moved acceptance of the ANC budget for FY 06-07.  It was seconded by Commissioner Sobelsohn and passed 6-0.

 

Commissioner Skolnik reported that the ANC had been audited by the DC Auditor and the Commission was given a “clean bill of health,” with three minor issues: there had been no budget submitted for FY 04-05; there had been credit card purchases, which have been eliminated; and the bank statements, which had been sent to the Treasurer’s home, are now being sent to the office.

 

Commissioner Sobelsohn moved adjournment of the meeting, which passed.  The meeting was adjourned at 10:35 pm.