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The Washington Post is reporting that developer William C. Smith is "no longer seeking" a proposed $8 million tax abatement to bring Whole Foods to a planned 375-unit apartment building at 800 New Jersey Ave., SE, and that in fact the news coverage of the proposal may have killed the deal altogether.
The article quotes a statement from Whole Foods saying that the company "was not involved in any tax break or lease agreement negotiations" with WC Smith, and Michael Stevens of the BID is quoted as saying "I used to know that Whole Foods wanted to be in the neighborhood. After that article, I don't know anymore."
Whether the entire Whole Foods deal is truly dead or there's just some steam being let off is not 100 percent clear in the article, though it quotes an anonymous source as saying that Whole Foods could still end up somewhere in the area and is "fielding entreaties from other developers."
This is/was not the only grocery store planned for Near Southeast, with Forest City including supermarket space in the apartment building that it has planned for 401 M St., SE at the Yards, which could be getting underway late this year or early in 2012. (Standard statement whenever mentioning this: it's long been reported that Harris Teeter will be occupying that space, but neither Forest City nor the grocery chain have ever publicly announced a deal.)
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More posts: Retail, WC Smith/Square 737, wholefoods
 

* I imagine most interested parties do not need to be reminded that tonight at 6 pm at 900 5th St. SE is the meeting with DCPS to find out what they plan to do with Van Ness Elementary. With laser-like precision, they picked a date when I absolutely can't be there, so anyone who wants to pass along the news as it's happening, please do. (I will be keeping an eye on Twitter.)
And, two recently Tweeted links that might be of interest:
* The Yards was named one of Five Projects that Will Transform Washington by the Washington Business Journal. "When completed, the neighborhood may finally achieve L'Enfant's vision for a bustling center of activity on the waterfront."
* The DC Fiscal Policy Institute takes a look at the possible $8 million tax break to bring Whole Foods to New Jersey Avenue, asking "why it makes sense for the District to continue putting money into an area that has seen tremendous public investments and is already on the cusp of development" and why the project would require a special subsidy to move forward, since they say that "Whole Foods already would qualify for a set of tax incentives on grocery-store development, including a 10-year property tax break on the store itself."
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More posts: meetings, WC Smith/Square 737, Van Ness Elementary, The Yards
 

From Tuesday's Washington Post, confirmation at last at what has been reported since 2002, but with a bit of a twist:
"Whole Foods Market and a D.C. real estate firm are interested in building a new store in Southeast Washington near Nationals Park, but the developer says that luring the grocer would require $8 million in tax breaks. William C. Smith and Co. is proposing a 39,000-square-foot Whole Foods for 800 New Jersey Ave. SE as part of a building that would include 375 apartments."
More: "Smith said the $800,000 annual tax break would cover requests by Whole Foods including an additional level of underground parking, extra elevators and higher ceilings on the bottom floor. Without the tax break, he said, he would either wait to develop the site or build a smaller apartment building with little or no retail."
Tax breaks for developments are being requested more frequently during this Era of Economic Difficulties, but the city's own financial troubles, and the amount of assistance that has been going to Ward 6 in comparison to other parts of the city, may make a request like this a tough sell, the article says.
There are already plans to bring a not-officially-named grocery store (*cough*Harris Teeter*cough*) to the neighborhood perhaps in 2013 at 4th and M in the Yards. This Whole Foods site, though, would also be a draw not only for Near Southeast residents but for folks on the south side of Capitol Hill, given its location just on the other side of the Southeast Freeway. You can see some photos of the site here.
WC Smith has been planning a four-building, 1.1-million square foot office/residential/retail project on this block (Square 737) for some time. The transfer of a small plot of land known Reservation 17A was finally completed last year from the Feds to the city, clearing a long-time bureaucratic hurdle to getting the site redeveloped. (This will also allow I Street to be built through between 2nd and New Jersey once the DPW building just to the south is demolished, which may happen this year.)
There has been chatter over the past few months that Smith was pitching the entire site for the 1.1-million-square-foot Department of Homeland Security lease that GSA currently has out for bid--this movement on getting a residential building started might seem to signal a shift from that possibility, along with being another indication that developers are sensing Near Southeast is a strong residential market.
This lot is next to 225 Virginia Avenue, the old Star/Post plant that is hours away from starting its transformation into 200 I Street, which will be home to three city agencies when its "re-skinning" and renovation is completed within the next two years.
(A note: The article says that WC Smith purchased the land from the Post in 2000 for $50 million; I think a decimal point got lost somewhere, because DC Property Records say that the lot, which used to be home to an old warehouse owned by the Washington Star and then the Washington Post, sold for $50,000 in December 1999. That number might not be right either, but considering that even now, in a completely changed neighborhood 11 years later, the 800 New Jersey land is assessed at just over $19 million $58 million, I doubt that Smith paid $50 million. [UPDATED because I looked at only one assessment record instead of three.] The WC Smith parcels were assessed at about $2.5 million in 2001, the oldest records that I have.)
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More posts: Retail, WC Smith/Square 737, wholefoods
 

A number of readers wrote in over the past few days with news of a new fence that has gone up across Canal Street west of Second, just north of the DPW/Trash Transfer Building where I Street will someday be built to connect Second and New Jersey, as well as another fence across Canal at H, across from the Charley Horse Stables entrance. (The photos are from just a few minutes ago, showing both fences open.) After asking DDOT about it (they said it wasn't their fence, although they did say they are doing some work on the freeway bridge across New Jersey Avenue), I've passed along the news to Tommy Wells's office. Hopefully they'll have further information. Technically the land being enclosed by the fence is on Square 737, which is owned by William C. Smith Co. (I believe these "streets" were technically "closed" in late 2006 in council bill B16-0888.)
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More posts: Trash Transfer Site/DPW, WC Smith/Square 737
 

(h/t reader M.) Last week, the Congress for the New Urbanism named the winners of its 2009 Charter Awards, and one of them is the "House Office Buildings Facilities Plan and Preliminary South Capitol Area Plan." I won't go into too much detail, since the majority of the area that the plan looked at is north of the freeway, but it is worth noting that, while it's a very neat plan that looks forward to both 2025 and 2050 and takes into account the vision of the NCPC's Extending the Legacy (no more freeway!), the designers of the HOB facilities plan perhaps didn't do a lot of research as to the reality of the land ownership south of the freeway. If you look at the maps of their proposed 2025 and 2050 implementations, you see all sorts of new government buildings on the block now dominated by 70 and 100 I Street, as well as a big park at Second and H, which might come as a surprise to the William C. Smith Co., which owns the block and is planning a 1.1-million-square-foot mixed-use project on that square. And yet the Post Plant remains, 41 years in the future, which probably is not what city planners would consider an optimal solution. And the Capitol Power Plant is still there, too!
All this aside, if you live or work on the Hill, you might be interested in what the future could bring for the parking garages, House Office Buildings, and other structures that are part of the Capitol Complex. And, if I'm missing something about how this plan is approaching the privately owned land south of the freeway, I'd love clarification....
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More posts: 225 Virginia/Old Post Plant/200 I, jpi, WC Smith/Square 737
 

Some items from the past few days. Big ones first:
* It's probably been true for weeks, but I've just now been by Diamond Teague Park for the first time in a while and can confirm that construction is definitely underway there. Fences are up, cranes (three of them?) are in place, and workers were there. Pictures tomorrow. (Probably *lots* of pictures tomorrow from all over, as long as the weather stays reasonably clear.)
* City Paper got its hands on the letter Mayor Fenty sent to DC Delegate Norton about the city's priorities should the Feds decide to toss some stimulus package dollars in this direction. As I predicted, the two Near Southeast bridge projects were mentioned: "In particular, aspects of the Eleventh Street and South Capitol Street Bridge replacement projects could be undertaken immediately." He also mentions the city's backlog of maintenance projects, along with investments in Metro and the implentation of the streetcar project. And school modernization. And public safety issues.And environmental initiatives. And housing affordability. And health care. (And now here's the stimulus bill itself, though it doesn't get down into specific projects. On the other hand, considering these two bridges ease the commutes to and from the district of the House Majority Leader....)
* Back in mid-November, the transfer of the plot of land known as Reservation 17A from the Feds to the city finally took place; it runs between New Jersey Avenue and Second Street, and is straddled by the trash transfer station building. With this now under District control, various wheels can start turning in that area, including allowing the establishment of I Street between Second and New Jersey that will form the southern boundary of WC Smith's 800 New Jersey Avenue project. There's hopes that the trash transfer station could be demolished in 2010.
* Reader T. reported yesterday that a small bought-at-the-hardware-store For Sale sign went up at 10th and M yesterday, in front of the fence of the Exxon station. I'm not sure what the deal is, since the land is actually owned by the Exxon Corporation, and you'd think they'd have better methods of marketing the land.
* The public notice for the March 19 Zoning Commission hearing on various Capper PUD alteration requests is now available.
* WBJ reports that the Nationals have parted ways with Centerplate, last year's concessionare at the ballpark. This year it will be Levy Restaurants for the food and Facility Merchandising Inc. for the retail.
* More of the fences are coming down at 55 M, as you can see on the web cam. (Though it took me more than a month to notice that the plywood "tunnel" at the Metro exit had disappeared.)
* The Douglass Bridge will be closed at 5 am Sunday until 10am-ish to test the swing span.
 

I have to admit that information fairs aren't quite my gig (especially since I'm immersed in this stuff everyday), but I did wander past today's Anacostia Waterfront Community Information Fair at the ballpark to see what there was to see. I got there pretty early and left pretty early, so didn't see any of the panel discussions (and didn't take any of the bus tours), but if you want to see how they configured the exhibitions within the Stars and Stripes clubs at the ballpark, here's a batch of photos. (And, if you were there, maybe you're in one or two of them!)
I also took a few new photos on First, Third, and New Jersey of 909 New Jersey, Velocity, Onyx, and the Foundry Lofts, which will serve mainly as a reminder of why I don't normally go on photo expeditions on cloudy days. If the weather finally shifts, I expect to be out taking some additional ones on Sunday, especially of 1015 Half, since the first columns are visible above ground-level.
Plus, I felt a burst of inspiration yesterday the likes of which I haven't seen in months, and *finally* created project pages for William C. Smith's 800 New Jersey Avenue development and for the 11th Street Bridges reconstruction. The 800 NJ page has almost no information (since there's so little to be had about the project beyond the basic 1.1-mil-office-residential-retail-and-maybe-Whole-Foods profile); the 11th Street Bridges page is a little better, but still is just a lot of pictures of overpasses and flyovers. Better than nothing in both cases, though!
 

Today's print edition of the WashBizJournal has some big retail-related Near Southeast items of interest:
* "The developer of The Yards, the 42-acre Anacostia riverfront project near the Nationals ballpark, is close to landing a jazz club and Dogfish Head Alehouse and may move its local headquarters to the former Navy Yard. The two retail tenants would be the first in the Boilermaker Shops, a three-story industrial building with walls of red brick and plate glass on Tingey Street between Third and Fourth streets SE." (The Boilermaker Shops are scheduled to open in mid-2010, along with the Park at the Yards and the Foundry Lofts.)
* The planned office building at 401 M could become home to Forest City Washington's headquarters; it's the one with the grocery store space in the ground floor. WBJ says Forest City "is 'nearing a deal' with a grocer for 50,000 square feet and an announcement could come in 60 days. He would not reveal the chain, but sources say it is Harris Teeter Inc. which has two D.C. stores and plans a third in Northeast." 401 M is not expected to be constructed before 2011, however.
* Also on the grocery store front, confirmation of the rumor that's been hashed around here lately: "William C. Smith & Co., meanwhile, has been in discussions with Whole Foods Market Inc. about a store in its planned 4-acre development between New Jersey Avenue, H and Second streets, known as Square 737." (See, I tried to tell you folks it wasn't going to be at New Jersey and K; and Jonathan, you're welcome for this tip.)
UPDATE: Finally getting *some* piece of news about 800 New Jersey finally spurred me, after all this time, to create a project page for it. There's no renderings, just a bunch of "before" pictures, but at least it's something. And, since talk of grocery store on this site back in *1999* was one of the first tidbits that led me to start paying attention to the neighborhood, I guess it finally deserves its own page.
 

A recent wander past the Office of Property Management page on 225 Virginia (aka the old Post Plant) brings the news that the deadline for proposals from entities interested in taking over the city's $500,000-a-month sublease has been pushed back to Oct. 15. The page has also been updated with a few other items of note:
* One of the results of the case that's coming before the Zoning Commission on Oct. 27 that seeks to add the plant's block to the Capitol South Receiving Zone would be to allow the property to receive transferred development rights, which allows for increased density (i.e., add some floors on top), though the page notes that "[a]dditional height is expected to be subject to some design review by the Office of Planning."
* The building is not a historic building, and the city will not be seeking any historic landmark designation for it.
There's also this: "The trash transfer station located at 900 New Jersey Avenue, SE is expected to be relocated by September, 2009." I get asked a lot about What The Deal Is with the trash transfer station, so here's a bit of a roundup:
The city is working on moving the current DPW operations out of the building to other locations around the area, with that September 2009 mentioned above now being the official timetable (though perhaps some of the functions will be gone sooner than that). In the meantime, the city is still waiting for the little plot of land on the edge of the transfer station known as Reservation 17A to be transferred to District control from the Feds. (That land will then be transferred from the city to William C. Smith to round out the land that will be home to their 1.1-million-sq-ft 800 New Jersey Avenue project.) This transfer has been hung up for almost two years (it's part of the same transfer that would give Federal land at Poplar Point and in Hill East to the city), but there may be some movement soon.
The next step once DPW has left and the land transfer is settled would be for the city to start the infrastructure work, environmental cleanup, and demolition around the trash transfer site (including the new section of I Street to be built between New Jersey and Second), which will be paid for via another PILOT (payment in lieu of taxes) plan that requires financing via the bond and credit markets--you know, those same bond and credit markets that are wheezing just a wee bit right now.
[All together now:] We shall see....
 

Rumors started flying in a few places lately that Whole Foods is coming to New Jersey and K, SE. I usually shy away from writing about rumors, but this one is persistent enough that it probably needs some addressing. It's not listed on their Stores in Development page, and no one's leaping to tell me this is or isn't true (which isn't surprising), but it's not completely out of the realm of possibility. There's been references here or there to "two grocery stores" coming to the neighborhood (with space for one set aside at the The Yards, coming in 2011 or later), and I've heard nonspecific Whole Foods/Near Southeast rumors a few times over the past year.
But I'm skeptical about it coming to the New Jersey/K intersection. There's only 6,000 square feet of retail in 909 New Jersey (not enough for a grocery store), and the plan for the trash transfer station has always been for it to be part of the Capper Hope VI project, with an apartment building that probably won't start before 2011. That leaves the southwest corner, where the Cohen family owns the small lots along K between New Jersey and First; there's also the Positive Nature lot at 1021 New Jersey and one to its south owned by Potomac Development Corp., who it should be noted picked up 51,000 square feet of transferred development rights earlier this year. (Can someone at CHT look out their window and confirm that the Positive Nature sign is still there?)
So maybe the "New Jersey" part is right, but not the "K"? My gaze (and my betting dollars) might head north a block or two, to 800 New Jersey (also sometimes known as 120 Canal), where for years William C. Smith has envisioned a grocery store as part of its planned 1.1-million-square-foot four-building development on the Square 737 block bounded by Second, H, New Jersey, and the eventually reconstituted I Street. No timeline for the start of this project has been announced, though. (In fact, there's so little information about the project that I haven't even felt compelled to build a project page for it.)
In other words, there aren't really any tea leaves to be read on this one, so if someone wants to spill the beans, I'm always listening.
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More posts: New Jersey Ave., Retail, WC Smith/Square 737, square 740, wholefoods
 
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