"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.)

* "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.

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.

UPDATE: I guess I should have mentioned that the Blue Castle used to be a trolley barn.

The first was B16-0799, alley closings and new street designations as part of the Capitol Quarter/Capper Carrollsburg project. Nothing really new in the testimony, except that it has been requested that the bill be considered by the council on an emergency basis, in order to help speed the process of getting the project underway. Ms. Cropp called the project "very, very exciting" and seemed particularly enthused by the mixed-income aspect of the project, noting that the city's past creation of "economic ghettos" hasn't worked out well.

Next up was B16-0888, which seeks to reopen H and I streets between 2nd and New Jersey, and to close alleys and streets within those two blocks; I was not aware until today that a portion of this land is actually federal land (Reservation 17A), which is part of the land transfer bill currently pending before Congress. The northern block (Square 737, north of I) is where William C. Smith is planning a mixed-use project, which in their testimony they broke out as two office buildings totalling 600,000 sq ft, two apartment buildings totalling 600 units (with a 10% affordable housing component), 1100 parking spaces, and 80,000-100,000 sq ft of retail space. They mentioned that back when they first bought the land in 1999 they got a letter of intent from Whole Foods to include a grocery store in this location, but then Whole Foods came down and saw that at that point there wasn't a whole lot of development going on, they pulled out; but Smith is still very interested in getting a grocery store in this development. They anticipate beginning work on this project in 2008 and completing it in 2011. As for Square 739 (where the DPW trash transfer station currently resides), it is actually part of the Capper/Carrollsburg redevelopment, and plans are for a 322-unit apartment building with 115 affordable units, and also ground-floor retail. They don't anticipate beginning work on the building for at least another 4 to 5 years. Ms. Cropp did express some concerns about where the DPW vehicles will be relocated to, given the lack of industrial land left in the city.

After lunch was B16-0879, Monument Realty's request for alley closings on Square 701 between Cushing, Half, M, and N (in the block just north of the ballpark) as part of their "Ballpark Phase I" project, which also includes the expansion of the Navy Yard Metro station at Half Street, which Monument is responsible for as part of their purchase of the WMATA land on the southwest corner of Half and M. New news from the hearing is that there will also be a hotel in addition to the previously announced 275,000-sq-ft office building at Half and M and the 350-unit residential building (mix of rental and condo, with up to 20% affordable housing) at Half and N--Monument is working with W Aloft to develop a 200-key boutique hotel on Half Street. The entire project will have 700 parking spaces, and Monument is planning to begin construction in January 2007 so that these three levels of underground parking (as well as perhaps some of the 50,000 sq ft of planned ground floor retail) can be completed by Opening Day 2008; they will then continue work on the upper floors to have the entire project completed in 2009. UPDATE: I should also note that as part of their plans, Monument will be extending Cushing Place approximately 80 feet, so that it will run through to N Street

Finally came B16-0880, another request from Monument Realty, this time for alley closings on the west side of Square 700, just across Half Street from the Phase I project in the previous alley closing hearing. They are still negotiating with WMATA to attempt to purchase the bus depot land on Square 700, but in the meantime are moving forward with a 115,000-sq-ft/100 unit residential project on the northwest corner of Half and N, on the site of the Good N Plenty carryout (whose lease expires today, it was mentioned). This project will have 12,000 sq ft of ground-floor retail, which, given its location directly across from the stadium plaza entrance, will be quite a prime location. Ms. Cropp was concerned that the project will only have two levels/74 spaces of underground parking (you got the feeling that parking is very much on her mind these days!). There was no stated timeframe for this project, except to say "after Square 701." And of course by then they'll have probably secured the bus depot.

For all of these bills, the next step I believe is getting them on the council consent calendar, for votes to be taken.

Is that enough information? Can I stop now? :-)

UPDATE: These hearings are all available via DC Cable 13's on-demand video offerings.