But those negotiations have still not completely been resolved, and, in a time-extension request filed last week with the Zoning Commission, Forest City described the current situation, which will displease long-frustrated neighborhood moviegoers:

"Because of the extensive delays tied to the important and expansive discussions regarding DC Water's relocation and operational needs, as well as DC Water's need to retain control of the F-1 Parcel to facilitation construction of its headquarters building, Forest City's rights with respect to the lease with the theater operator have expired. Despite efforts to reconstitute that deal, it is clear that Forest City will not be able to proceed with the original approved program for a two-level, 16-screen theater above a four-level parking garage."

The filing goes on to say that the company is "now pursuing additional refinements to the approved plans." While the building's size and scale will likely stay the same, it is possible that the theater will be "reduced in size" and/or "incorporating other appropriate and compatible uses for the site to ensure a viable project." There is also apparently a need to relocate the building's planned loading and service access onto N Place and away from DC Water's ongoing operations. The facade design will likely change as well.

The filing states that the "very complicated planning constraints on this unique site" have "nearly reached final resolution," but that Forest City now requests an additional two years to work on redesigning the plan.

(Of course, this means that the replacement of "When will Whole Foods open?" with "When will the movie theater open?" as the most-asked question at JDLand will continue on for a while.)

* MOVIE THEATER MOVING FORWARD: WBJ reports that "D.C. Water, developer Forest City Washington and the District government have settled all outstanding business tied not only to the parcel needed for the long-planned 16-screen, 1,500-seat movie theater, but other sites surrounding it that are similarly planned as part of The Yards."

Forest City should receive the movie theater land in late spring, apparently, with the other residential-planned parcels to come probably over the next five years.

* LERNER BUYS 49 L: The General Services Administration announced this morning that the sale closed on Feb.22 for the one-story brick warehouse on the southeast corner of Half and L, SE.

Property records show that "Half Street Partners, LLC" paid $31 million for the site. And that LLC happens to have a mailing address of 2000 Tower Oaks Blvd., Eighth Floor, which happens to be the address of Lerner Enterprises.

No word yet on the plans for the site, which is (sort of) across the street from Lerner's 20 M office building, and also creates a sort-of Lerner-owned triangle with...

* 1000 SOUTH CAPITOL MOVING FORWARD: Lerner officially announced this week its plans to build the 250-unit 13-story residential building at South Capitol and K that has been working its way through the design and zoning process for the past few years. Designed by Shalom Baranes Associates, it will also have 10,000 square feet of retail along with the lineup of amenities befitting a new "luxury" building--fitness center with Pelotons, private dining room with demonstration kitchen, rooftop pool and entertainment center, and pet spa and bicycle repair offerings for residents. It is expected to get underway late in 2018.

UPDATE: And now we have one more piece of neighborhood news from WBJ today, which is that it has finally been officially announced that the new hotel at 3rd and Tingey in the Yards will be a Thompson boutique hotel.

(Though it must be noted that the WBJ story doesn't seem to quite realize that the hotel is already under construction, in a joint digging-and-building project with Forest City's next residential building, on Parcel L.)

The hotel will have 225 rooms, and the residential building will have about 270 units, and combined the two will have about 24,000 square feet of retail.

* HAMBURGLARY: Fresh on the news of its pending demise, the McDonald's at South Capitol and I was robbed early Saturday morning, with the three suspects jumping through the drive-through window to get to the cash. And here's MPD's Persons of Interest video. (WaPo, MPD)

* CSX DERAILMENT: The derailment in Northeast of a CSX train carrying hazardous materials has reignited {sorry} the concerns over both the city's need to boost its oversight of freight rail and the movement of hazmat through the Virginia Avenue Tunnel. (WaPo, plus a City Paper piece as well)

* TENANT NEWS: "Global public strategy firm" Mercury Public Affairs, LLC has signed a lease for the 8,020 square feet of office space in the upper levels of the Boilermaker Shops at the Yards, and will move in this summer. As for other Yards tenants, I hear that Whaley's could be opening Any Minute Now, with Philz not far behind. (Elsewhere, the Brig is probably still a couple of weeks away.)

* THE VERY MODEL OF A MINOR MODIFICATION: Forest City is back to the Zoning Commission with some changes to the design of the planned Showplace Icon movie theater. But you might need a microscope to spot the difference between old vs new on the exterior renderings. (And it's technically not a "minor modification," but I was feeling all Gilbert and Sullivan this morning.)

* WHY, A DUCK: Duck stops 11th Street Bridge traffic. (WaPo)

* BEHIND THE CURTAIN: DCist profiles a crazy blogger who has spent years taking photos of construction sites. I mean, honestly! Get a life!

From the release: "Each theater in the new Showplace Icon at The Yards will feature wall-to-wall screens and premium sound, deluxe leather recliner seats and reserved seating. The facility will also have exclusive VIP levels with adults-only access and tables for enjoying food and beverages inside the auditoriums. The theatre's Lobby Lounge will feature a full bar, along with a tasty menu of appetizers, small plates, snacks and desserts for enjoying before, during or after the show." The theater will also have its own 320-space parking garage.

Word of Forest City's plans for a movie theater first leaked out in the spring of 2013, but it wasn't until just a few months ago that the deal to take control of this portion of the DC Water site was locked down. Though note that the press release also says that "the theatre construction start is dependent upon DC Water’s timetable for vacating that portion of the property."

There are also plans for two residential buildings along 1st Street, though no timeline for those has been announced.

See my Yards at DC Water page for more details, or read my previous posts on the theater.

(PS: deep in the release, it mentions that the Due South restaurant at the Lumber Shed is expected to open "this summer." No date for Nicoletta, though. It also says that the PN Hoffman condo building and Forest City's apartment building immediately to its south on the current trapeze school lot are expected to break ground in early 2016.)

There has been no public news of a new site, but the DC government has announced that there will be a public meeting on Nov. 20 at 6:30 pm "to receive public comments on the proposed surplus" of a portion of the DC Water site, which presumably includes all or some of the footprint of the Forest City planned development.

The meeting announcement also contains this string of caveats:

"Because DC Water will continue to occupy the Property while pre-development is ongoing, declaration of the Property as surplus will be conditioned on (i) DC Water receiving rights to occupy suitable relocation/replacement property(ies), (ii) available funding for activities necessary to allow DC Water to relocate to and operate on such relocation/replacement property(ies) and (iii) approval by an independent engineer procured by DC Water of an operational plan during and after relocation."

The meeting is at the Boilermaker Shops at 3rd and Tingey, in Unit 140 (the empty space next to Nando's). In addition, written public comments will be accepted until Nov. 25.

If you're just joining us, it was a smidge over two years ago that news first started bubbling up that Forest City was looking to bring a "high-quality theater operator" to a six-acre portion of the DC Water site. In November 2012 the potential operator was revealed to be Showplace Icon, and in 2013 the plans for the entire site went through the Zoning PUD fun factory, and were approved late in the year.

The first phase of the project, which received Stage 2 PUD approvals from the Zoning Comission, will be the movie theater, a two-story 16-screen offering, built above a four-story parking structure, located at a new intersection of N Place SE and the to-be-built 1 1/2 Place.

The rest of the project envisions two residential buildings totaling 600 units, built along 1st Street directly across from the ballpark. with the facade of the existing red brick building at the corner of 1st and N Place preserved and incorporated into one of the buildings. Potomac Avenue would be extended eastward to the new 1 1/2 Place, and Diamond Teague Park would be expanded northward. There would also be a minimum 40,000 square feet of retail.

But all of this has to wait until DC Water can find a suitable new home for some of the operations that currently live at 125 O Street SE.

It's also worth noting with each post on this project that DC Water will not be departing the site completely--the beautiful historic Main Pumping Station building will keep right on pumping, as will the less-beautiful and less-historic O Street Pumping station. In addition, earlier this year DC Water solicited bids for the design of a new headquarters building, which would bring the agency's HQ from Blue Plains to a space on top of the O Street station.

First, at right (click to enlarge), a rendering of the Twelve12 development's southwest corner at 4th and Tingey SE, now updated to show in the corner ground-floor retail space that Sweetgreen will be coming to when the project is completed in mid-2014.

And below, an overhead view of what some of the DC Water acreage could look like if/when Forest City's plans to Yard-ify the site come to fruition:

Working from the far left, you see Nats Park at 1st Street and the two green-roofed residential buildings totalling 625ish units, along with the 16-screen movie theater just to their east. There's also a whole lot more grass and greenery around the two DC Water buildings that would remain on the site, the historic Main Pumping Station and also the more midcentury O Street station building by the river. And, if you know what you're looking for, you can see that Diamond Teague Park has been expanded northward, and Potomac Avenue has been extended one block east to a new street (1 1/2 Place) that would run between the theater and the residential buildings.

(There's also a couple of other interesting tidbits on this drawing, including two new buildings at far right just to the north of the Yards Park's great lawn, and two other buildings just to the north of the theater and 1st street buildings. All of these are within the footprint of the Yards, on sites currently occupied by surface parking lots. But those are probably still a good ways off. And you can also see at the very bottom right the first hint of the marina that is supposed to be coming to the Yards Park someday.)

The relocation, once completed, makes way for an expansion of the Yards footprint and the potential addition of residential and retail offerings, including a planned movie theater.

Originally $8 million was earmarked for the DC Water relocation--according to the Post's Tim Craig on Tuesday, $5 million of that money was to be restored. (I am working to confirm exactly what the final number is, and will update.) UPDATE: The restored funding is $6 million, according to Charles Allen.

(Note that DC Water will not be removed completely from this area--the Main Pumping Station will continue to operate in its lovely historic building. It appears to be mainly "fleet management"/parking operations that will relocate.)

In a press release on the restoration, Tommy Wells (also running for mayor) is quoted thusly: "This is great news for the riverfront. I’m very glad we were able to restore these funds to keep this important project on schedule. Working with my colleagues, these funds will be used to create a project that develops new jobs and residences, and importantly, will serve as a critical link in the revitalization of the riverfront neighborhood."

Additionally, the press release quotes Forest City Washington president Deborah Ratner Salzberg: "Today’s action by Council allows us to continue to work with DC Water to keep this project on schedule for the neighborhood and the city. This mixed-use component of The Yards is an important link for the overall project and its riverfront neighborhood – bringing jobs, residents and desired new amenities. We appreciate the work of Chairman Mendelson working with Councilmembers Wells, Grosso and Barry and the unanimous support of their Council colleagues to restore the funding and ensure the project moves forward on schedule."

This relocation is a step on the path to Forest City's plans for a mixed-use development including a movie theater on that site. The project is currently going through the zoning process, and is expected to have a hearing within the next few months.

Let's hand the narrative over to the Washington Business Journal: "Bowser described the D.C. WASA project, in the report, as a 'poor use of capital funding,' given that a replacement WASA site has not been identified. Later Thursday, the councilwoman said that she supports the relocation project and that she left enough money in the fund -- $1 million in 2014 and $9 million in 2015 -- to continue community outreach and relocation work.

"The WASA project, she said, will require extensive environmental remediation and can't possibly be done next year.

"'They can't use it,'" she said of the $9 million set aside in 2014."

As for how the mayor's office feels about the move? "'Stopping the Yards project -- who in their right mind thinks that's a good idea?' responded Pedro Ribeiro, Gray's spokesman."

This is not the final word in the budgeting process--the full council still needs to vote on the budget, and there could still be some maneuvers to come.

UPDATE, May 21: And, 11 days later, the full council voted to restore funding.

Forest City Washington is moving forward with the plans for a sixteen screen movie theater near Nationals Park, having submitted a truckload of documents this week to the Zoning Commission for its plans to redevelop more than five acres of land currently occupied by DC Water.

While people are always interested in projects for more residential buildings with ground-floor retail, it was the plans for a movie theater on the site that drew a decent-sized crowd to the meeting, and the attendees learned that Showplace Icon is the heretofore unnamed operator that Forest City is currently in negotiations with.

It would be a 16-screen theater with more than 2,000 seats on N Place SE (see my quickie map for placement in regards to Nats Park and the main WASA pumping station), and Icon's more upscale amenities and approach to movie-going were extensively touted, including all reserved seating, VIP areas in each theater with extra-wide seats and person tables, wall-to-wall and ceiling-to-floor digital screens, no on-screen pre-show advertising, fresh-not-frozen food prepared on site, and their "lobby lounge," with about 100 seats and 21-and-over-only admittance.

But it was Icon's "policies to encourage courteous behavior" that seemed to defuse the "ZOMG GALLERY PLACE" concerns about the theater that had been cropping up on neighborhood mailing lists and elsewhere over the past few weeks. The theaters will not allow children under 17 after 7 pm without an adult, no one is admitted after the movie starts, no children under seven are admitted to PG-13 or R movies after 7 pm, and the adult admission price also applies to children.

Bob Gallivan of Kerasotes Showplace Theaters said that the company's theaters in Chicago and suburban Minneapolis are "bringing people back to the movies who haven't been for awhile" thanks to these policies, because they are trying to "create a civilized atmosphere." ("We're not a babysitting service," he also said.)

Thanks to being an all-digital theater, the venue would also be able to offer other content, such as simulcasts of the Metropolitan Opera, sporting events, and other events. And the theater would also have some small retail and maybe artist space along N Place.

As for the rest of the plans for the site, along 1st Street across from Nationals Park there would be two residential buildings, totalling 625ish units, each with ground-floor retail; and the northern one of the two would incorporate the brick/industrial facade of the existing DC Water fleet management building on 1st between N Place and O (seen at left).

O Street would be re-established from 1st east to the new 1 1/2 Place, and Potomac Avenue would be extended east from 1st as well to 1 1/2 Place.

Forest City's planners envision a "lower-scale" retail experience along 1 1/2 Place (smaller "eclectic" retailers, not "low-end"), with more "large-scale" offerings long 1st thanks to the size of the street and its location across from the ballpark. All told this area of the Yards would have about 50,000 square feet of retail.

Diamond Teague Park would also be expanded somewhat to the north of its current footprint, up to the new Potomac Avenue. It's possible that Potomac Avenue and the lower part of 1 1/2 Place could be closed at times for street festivals, etc.

As for any timeline on all of this, first Forest City has to actually acquire the land from DC Water and the city, and then has to complete the negotiations with Showplace Icon. (The fact that Forest City has even named Icon before executing the lease is a pretty big departure for the company, and shows an understanding of the need to clearly define what sort of theater experience would be on the boards.) Then the project has to go through the zoning process (it will be a PUD), and then get building permits. Forest City "hopes" to begin the approximately two years of construction for the theater in 2014, but that's a lot of ducks to get in a row first. (The residential buildings would come later.)

Audience members had questions about security (Icon uses off-duty police in Chicago, and Forest City would have its own security as well), types of films that would be offered (art-house and blockbusters), worries that the Lobby Lounge might become a club (not an issue, Icon says), and how traffic generated by the development would co-exist with 40,000 fans one block away at Nationals Park 81 nights a year (or more!). Because it's still early in the process, there weren't concrete answers to some of the concerns, but this project still has to go before ANC 6D and the Zoning Commission before being approved, so there will be plenty of opportunities for additional detail to be insisted upon.

Should I mention again that this is all still subject to both the DC Water land deal and the lease with Icon getting finalized?

Much more to come on this, obviously. And, for people who weren't at the meeting who didn't get to see any of the EARLY CONCEPTUAL NOT FINALIZED drawings, I have asked for at least the EARLY CONCEPTUAL NOT FINALIZED rendering of the glass-walled theater exterior to post, and hopefully before too long Forest City will be ready to share it.