This infrastructure work would be some as-yet-undetermined combination of underground work on the Second Street blocks, the relocation of the DPW operations at New Jersey and K and demolition of that block, and the construction of I Street between Second and New Jersey. These projects were originally expected to be funded by the sale of unrated municipal bonds, but the current Economic Difficulties have made those sorts of bonds all but extinct, and additional attempts to secure loans from banks for the money have been fruitless as well.

Now, a bill is expected to be introduced at Tuesday's city council session amending the 2006 Capper PILOT law to allow for bonds to be issued, guaranteed by the CFO's office (and thereby able to reflect the city's rating on the bond markets), which would be "supported" by real estate tax revenues being collected from various existing TIF projects in the city. If the expected timeline of council approval is met, the bonds--totalling somewhere in the neighborhood of $28 million--could be issued by the end of 2009.

(But don't look out your window on Jan. 1, 2010 expecting to see the trash transfer station's smokestack being smacked by a wrecking ball--they still have to find somewhere for the DPW operations to relocate to, which I'm guessing is more difficult than finding somewhere to move a bunch of schoolbuses, and everyone knows how long that took.)

The proceeds won't all be used for construction, since there are loans to be repaid and other high-finance maneuvers that are well above my level of understanding. But this influx of funding, along with the HUD grant, would give Capper's redevelopment a push forward at a time when few projects are seeing any sort of progress, and would get the money-hungry city closer to being able to start reeling in the property taxes from all these blocks that aren't currently generating any revenue.

UPDATE: Here's the text of the new bill.

The National Capital Planning Commission documents I linked to last week included letters sent by the Marines and the Navy in early April setting out their objections; the NCPC has now posted new letters from the Navy and also Holland and Knight (representing the developers), laying out the wording of the agreement between the parties to install (at the services' expense) surveillance cameras on the top of both the new office building that faces the Navy Yard and the new apartment building that faces the Marine Bachelor Enlisted Quarters, and that the developer will provide to the Navy Yard a list of tenants on the fourth through eighth floors of the office building, though "this provision shall not be deemed to grant the Navy any right to approve or disapprove of any tenants in the office building." There's also a requirement to notify the Navy and Marines about any events to be held on the roof decks of the buildings, but "for informational purposes only," without requiring any type of approval. With the Navy agreeing to the wording of this agreement, its objection to the zoning case was withdrawn.

I'll note that there's also reference in these letters to a June 3 letter from the Marines that is not included in the document packet, which seems to indicate that the Marines did not agree to the wording despite the developer's having believed that there had been an agreement. Quoting (see page 9): "In fact, nothing in the Marines' June 3rd letter indicates why the Applicant's proposed conditions are unacceptable, or what remaining concerns the Marines have." There's then this sentence, which seems to be hinting at plans by the Marines for some new development: "The Marines, beyond the scope of the proposed modifications which are the subject of this pending application, have requested a delay to accommodate their entirely new planning initiative." And what would this new planning initiative be? I'm hearing murmurs that the Marines may be looking for more land for more barracks, though I'm not able to confirm that.

In any event, the developer laid out a list of reasons that this zoning approval should not be delayed, and both the NCPC (last week) and the Zoning Commission (last night) gave their approvals for the zoning changes in spite of whatever objections the Marines were putting forth.

There wasn't much discussion of all of this at the Zoning Commission's meeting, but I need an excuse to link to the Video on Demand section of the DCOZ web site, which apparently has been around for months but which I only noticed last night. So, if you want to watch this or any ZC/BZA public meeting going back to November of 2008, they're now there for the taking. (And it's also nice to see how quickly last night's video was posted.)

Now, with these Capper zoning changes approved, the next milestone to watch for will be when the Housing Authority can find financing for another PILOT bond offering to rebuild the infrastructure on the west side of the Capper footprint (including around Canal Park), as well as the mitigation and demolition of the trash transfer station at New Jersey and K. That PILOT financing will also fund the Community Center that has been the subject of much contentious back-and-forth. Are the credit markets unfrozen enough to get this PILOT off the ground? We shall see....

The letter ANC 6D is now forwarding to the Zoning Commission can be read here, and it addresses in detail the Community Support Services Program (CSSP) and the community center. The DCHA numbers quoted in the ANC letter show an initial CSSP case load since 2005 of 828 cases, with only 394 cases now active due to residents declining to participate, being declared ineligible, or having gone "missing." The letter also says that no further funding for the CSSP program is forthcoming from HUD, and says that the numbers provided by DCHA "do not paint a good picture for a Hope VI Project whose main objective is sustainability and empowerment for the effected community."

As for the community center planned for Fifth and K, the ANC says that its delay "has already done sufficient damage" and that its absence "will fail to address the social and educational needs of the residents." The ANC also notes a lack of any mention of the center in various testimonies by DCHA on their budget and on stimulus dollars coming to the city, saying "we now have no confidence [...] that the Center will ever be built."

The Zoning Commission's next hearing on these Capper doings is expected to be on April 27.

I've also managed to snag the first renderings of two of the planned Capper apartment buildings, which I've added to my project page. One (seen at top left) shows the 171-unit building planned for L Street, next to Canal Park and behind the proposed 250 M Street office building. There's also now a first look at the 189-unit building planned for the 600 block of L Street (seen above), on the north side of the old Capper Seniors lot and just south of the Marine Bachelor Enlisted Quarters. In the original Capper plans, this site was going to be townhouses, but it was decided that an apartment building would fit in better with the larger surrounding structures.

The Thursday hearing will be available via live web cast, if you're so inclined.