Posts about DMPED
Government
Amid scandal, don't lose sight of Gray's policy achievements
The charges filed yesterday against Vincent Gray's former assistant campaign treasurer will surely reinforce the image in many voters' minds of a scandal-plagued mayor who has accomplished nothing for the District. The scandals may be real, but his administration has also racked up some important achievements across the government.
Instead of halting progress or even reversing course on bicycle infrastructure, streetcars, and education reform, the Gray administration is strengthening DC's commitment to these innovations. It has set clear priorities for traffic safety, performance parking, and sustainability, helped unemployed residents get jobs, and restored the rainy-day fund instead of spending it down.
None of this justifies any of the alleged illegal acts that happened in the campaign, but neither is this unimportant.
Ultimately, Gray's mayoralty will leave a lasting effect on the budget and city services, and residents, whether they voted for and endorsed Adrian Fenty (as I did) or Gray, should care a great deal about what the capable people in the administration, unconnected to the campaign or any campaign finance, are doing.
We've also yet to find out whether the mayor himself was part of any illegal activity or knew about it. Based on what we know thus far, it appears that Gray made some very poor choices about whom to trust early on. Since then, he's replaced most of these poor hires with better staff, who are better at sharing the administration's positive accomplishments, such as:
One City One Hire
The administration's program to help unemployed residents find jobs has now succeeded in getting employers to hire 3,000 unemployed District residents in the past year.
There are numerous obstacles to getting people into jobs, but employers' lack of trust in DC's jobless has been among the most intractable. One City One Hire officials work to restore this trust by personally vetting resumes of unemployed DC residents and asking employers to consider a couple of handpicked resumes for each opening.
Some feel that this is what the Department of Employment Services (DOES) was supposed to be doing all along. This is technically true. It's also true that DC Public Schools are supposed to be properly educating our children. We shouldn't withhold credit where credit is due when DCPS or DOES fulfills its mission.
Sector-specific economic development
Under previous administrations, the Deputy Mayor for Planning and Economic Development was concerned almost exclusively with real estate deals. Although targeted real estate deals are important, only Mayor Gray has really invested in developing other sectors that are strategically important to the city.
The Mayor's broader focus has produced new positions critical to the city's economy, even if the officers filling those positions often operate behind the scenes. For example, newly hired DMPED officials regularly meet with leaders of the technology, government contractor, and health care communities to align identify ways DC can support these strategically important sectors.
A newly reconstituted Workforce Investment Council, whose executive director Alison Gerber was recruited from the Aspen Institute, has made it clear that workforce development dollars must be targeted to high demand sectors. As a result, for the first time, workforce development in DC is no longer scattershot, with the Gray Administration targeting key sectors.
DOES has cut off funding to several training providers whose training wasn't aligned with these sectors. A new Workforce Intermediary will ensure that the needs of hospitality and construction employers are addressed by training providers.
Continued capital investments without raiding city's reserves
DC residents were aware of the many capital improvements made under former Mayor Fenty, but fewer were aware that Fenty drew down the "rainy day" fund of $700 million to pay for some of these improvements.
Mayor Gray has continued the pace of capital improvements, with renovations of Takoma Education Campus and Woodson, Cardozo and Anacostia High Schools. While maintaining the pace of the previous Administration, Mayor Gray has managed to replenish our reserve fund, bringing it up to $1.1 billion.
Sustainability plan
If you haven't seen the objectives Mayor Gray set for 2032 in his Sustainable DC plan, then you should take a look. These objectives should provide the basis for numerous DC government initiatives over the next two decades covering issues as diverse as our food supply and obesity, along with transportation, tree canopy, and waste.
For some these strategic plans and objectives may seem mere feel-good talk, but these objectives matter. Historically, DC government has looked to such comprehensive plans and small area plans in designing legislation and framing countless policy debates in subsequent years.
Cameras and parking
Study after study proves that traffic cameras save lives. Mayor Gray significantly expanded traffic cameras in this year's budget, a politically courageous move that will continue DC's trend of lower and lower traffic fatalities.
While the DC Council created visionary pilots in performance parking, the previous administration never made it much of a priority to adjust meter rates to manage curbside space effectively. The Gray administration has expanded performance parking and made it clear this is a priority.
Continued momentum in education reform, streetcars and bike lanes
Some predicted that education reform, the streetcar and bike lanes would stop under Mayor Gray. Let's be clear: that hasn't happened. Mayor Gray has increased the investment in streetcars, pledging $100 million in capital funds starting last year.
The pace of bike lane construction slowed a bit at first, but DDOT is now putting in bike lanes on many streets throughout the city, and is on track to build the L Street track this summer and M street soon after. He even vociferously defended Capital Bikeshare over Twitter to skeptical New York reporters.
Finally, Mayor Gray has continued the process of education reform, despite the fears of many DC residents. Teachers are still being evaluated and sometimes fired based on performance, not on seniority.
The Gray administration's education reforms have included important initiatives which haven't received the same attention and publicity accorded the teacher firings. The administration has already made strides toward improving our special education system and opened multiple Early Stages centers aimed at early identification of kids with special needs. These investments have reduced by 20% the number of children bused, at DC's expense, to non-public special education, saving significant money.
I'm not nominating Mayor Gray for sainthood, but residents need to reexamine the fairly widespread belief that the administration is not getting anything done. While Adrian Fenty was very good at getting press attention for his actions, this administration is acting more quietly.
We should condemn any illegal behavior from the campaign, but we must also give the mayor and his staff credit for the ways the administration is making DC greater for the long term.
Government
What can DC learn from its successful subsidies?
New data from the Office of the DC CFO reveals that the initial wave of development subsidies, such as Gallery Place, have repaid to the city well ahead of schedule. While excellent news for the city's finances, these subsidies also provide important lessons that some present-day corporate subsidies don't always follow.
The hefty return to the city's coffers vindicates proponents who have faced years of criticism for their deals with developers. Authors of these successful subsidies followed 2 important rules.
First, they identified corporate activities that would yield indirect, "knock-on" benefits that are strategically important beyond the direct tax revenues of the activities. Second, they narrowly targeted the subsidies to only the size necessary to create that "knock-on" benefit.
First wave of subsidies reap healthy return
Most pre-recession subsidies were made through tax increment financing (TIFs), in which future gains in sales and/or property taxes from a development are used to repay bonds that finance a developer subsidy.
Each of these TIFs are repaying to the city well ahead of schedule, providing needed funds for schools, social services and other cash-strapped priorities in DC.
Many of these projects were harshly criticized at the time as corporate giveaways. So the speedy repayment of these subsidies lends credibility to the arguments of their proponents, such as Councilmember Jack Evans and former Mayor Williams, and to TIFs in general.
| Project | Year | Subsidy | Performance |
| Spy Museum | 2001 | $6,900,000 | Paid in 2007 instead of 2014 |
| Gallery Place | 2002 | $73,650,000 | Returned $15,175,861 to city above debt payments |
| Mandarin Oriental Hotel | 2002 | $46,000,000 | |
| Embassy Suites | 2003 | $11,000,000 | Paid in 2011 instead of 2016 |
| DC USA | 2004 | $40,000,000 | Estimated to be paid in 2015 instead of 2026 |
| Capitol Hill Towers | 2006 | $11,500,000 | $2.4 remaining, matures in 2029 |
These TIFs were successful because they were designed in accordance with two principles of effective corporate subsidies. As will be seen below, present-day corporate subsidies haven't always followed one or the other of these two principles.
1) Focus on knock-on benefits: Advocates for corporate subsidies often appeal to the tax revenue that would be lost if a developer doesn't build a building or a company chooses not to locate in one's city. Successful subsidies, however, are more focused on knock-on benefits that are strategically important to a city's finances.
Granting subsidies so that a company's activities When the desired activity is to locate in one's city, a "race to the bottom" ensues between states which only hurts their collective ability to pay for education and social services.
That's why effective subsidies are designed to yield knock-on benefits that support a city's strategic goals, like developing a particular sector or a particular part of the city.
The first wave of TIFs were intended to steer the development of downtown away from office buildings and towards multi-use. As Councilmember Evans explained it, "The highest [revenue] use is an office building but then you end up with a Crystal City complex which I can't stand."
The knock-on activities 2) Narrowly target subsidy to yield knock-on benefits: There are always risks with corporate subsidies. The company could pick up and leave without it, or maybe they would have completed the project even without the subsidy.
That's why it's critical to limit a city's exposure. Subsidies are investments, and investments have risks. The DC CFO narrowly targeted the first wave of TIFs to be only as much as is needed to stimulate the intended knock-on benefits for the city.
For each TIF application, the CFO conducted a gap analysis. This analysis compares the amount of private financing that should be available for a development to the costs of the project. The CFO would only certify TIFs at that subsidy amount. The head of economic development finance for the DC CFO, John Ross, explained the process this way: Present-day subsidies often veer from principles of early TIFs
If the District's first corporate subsidies have reaped such healthy returns, several present-day subsidies veer from the principles behind the successful subsidies.
Some recent large TIFs, like Southwest Waterfront and O Street Market, as well as the proposed LivingSocial tax break, don't follow these principles.
There has been no financial gap analysis for more recent TIFs. Without ensuring that any financing gap actually exists, DC doesn't know if development projects would have happened anyway and it risks overpaying.
The first wave of TIFs were granted under the TIF Authorization Act of 1998 which required a thorough financial analysis and certification by the CFO.
Though no longer empowered to certify TIFs, the CFO still provides financial assessments of TIF applications to the Council and Mayor. These assessments raised particular concerns about 2 TIFs: City Market at O Street and the Southwest Waterfront.
The CFO, in his assessment, complained that both the O Street and Southwest Waterfront TIFs were being granted with less information about the project than would be required to issue a complete financial evaluation. There were no final plans or cost estimates for either project.
In fact, neither application included a specific financial commitment from the private developer, making impossible any analysis of the necessary size of the subsidy. The O Street application said that the developer for the hotel hadn't even been identified yet, even though the hotel was supposed to provide 44% of the incremental tax revenues to repay the bond.
While the CFO's office was included in negotiations with the developers after raising concerns in their analyses, the process for granting these TIFs was clearly intended to increase speed at the expense of financial scrutiny.
More recently, the proposed LivingSocial subsidy of up to $32 million to remain and consolidate their operations in the District also veers from proven principles of corporate subsidies.
Proponents of this subsidy often appeal to the tax revenues from LivingSocial that will far exceed this subsidy. Paying for tax revenue, however, only rewards companies who threaten to leave while encouraging a race to the bottom between states competing for companies.
The LivingSocial proposed subsidy is intended to be targeted. The subsidy doesn't begin until 2015 and scales based on the number of DC residents employed, which must be at least half of LivingSocial employees.
But are these jobs that we should be paying for? They aren't strategically aligned with the needs of the city's unemployed, and most of the jobs won't contribute to building a tech sector.
According to a source, only 15% of LivingSocial jobs are in technology, IT, and product development. A subsidy that was targeted to generate knock-on benefits that are strategically important would thus focus on retaining that 15% of LivingSocial positions.
The debate around corporate subsidies is too often dominated by loud voices at the extremes. But experience shows that corporate subsidies can work, and they can also be a waste of precious dollars.
The next time you read of a proposed corporate subsidy, avoid these hyperbolic extremes and ask if the subsidy adheres to these two proven lessons for effective subsidies. If it does, defend the administration that proposes the subsidy, If it doesn't, as recent subsidies have not, then ask questions. CFO had to do a certification, and that certification had to include a list of issues. One of them was whether the TIF would cover the debt service payments. One was whether the project would move forward without government support. One was the level of benefits of the TIF that would go to the community. Without that, the TIF could not even go to the Council.
While time-consuming, such a process ensures that subsidies are narrowly targeted to yield the benefits intended.
Project Year Subsidy City Market at O Street 2008 $46,500,000 Southwest Waterfront 2014 $198,000,000
Government
Will LivingSocial help build a tech hub in DC?
Mayor Gray wants to expand a tax incentive, aimed at tech companies, to give LivingSocial up to $32.5 million in tax breaks over the next 5 years. The company threatened to move to Northern Virginia if it didn't get the tax break. Is it worth this money for DC to keep them?
One major rationale for giving tax breaks to tech companies is to create a "tech hub," a concentration of jobs, talent, and investment that leads more potential tech workers, entrepreneurs, and investors to choose to move to, start companies in, and invest in DC.
The tax break requires LivingSocial to keep jobs in DC, but that's not enough to create a tech hub or any lasting value for DC. To be worthwhile, the tax break needs to push LivingSocial to create new, high-quality software engineering jobs in the District.
Just for comparison, $32.5 million is about the cost of modernizing an elementary school like Stuart-Hobson ($33.6 million). It's also roughly equivalent to the cuts Mayor Gray is proposing to the Housing Production Trust Fund, our best vehicle for promoting affordable housing ($38 million).
Before supporting the tax break, DC residents deserve to know specific benefits that these LivingSocial tax breaks will yield, and that they are more important than modernizing an elementary school or increasing the supply of affordable housing.
The proposed tax breaks reduce LivingSocial's property and income tax from 2015-2020 on a sliding scale based on number of DC residents employed. At least half of their employees must be DC residents for the tax breaks to kick in at all.
The vast majority of LivingSocial's employees are not engineers. Half of them work in sales and many work in transitional jobs writing copy for the deals.
These are good jobs, but they're not tech jobs, and don't contribute to a tech hub. The people who fill these jobs wouldn't necessarily work in technology firms after LivingSocial.
There are two unique things that LivingSocial or another tech company can bring to the District, and these essential elements are part of all successful tech hubs.
- Smart money: The executives are good at innovation, and will start investing in other innovative companies if their company goes public or is acquired.
- Smart engineers: The companies recruit and train very capable software engineers.
A deal that will benefit DC residents must be structured to retain smart money and smart engineers in DC.
Smart money, i.e. venture capital, is regional and is not confined to a particular county. So keeping LivingSocial execs who cash out and become venture capitalists in DC instead of Arlington doesn't seem worth paying $32.5 million for.
Smart engineers are another story. Most of LivingSocial's engineering openings are not in DC. Why not structure the tax breaks to target software engineers? Their presence in DC contributes to a larger tech cluster when they leave to work for other innovative tech companies.
The competition for smart engineers is intense in all tech hubs around the country. Even if LivingSocial, which currently loses hundreds of millions of dollars per year, doesn't find an exit strategy, DC would still benefit by the presence of hundreds of smart engineers looking to join innovative startups.
Apparently LivingSocial executives have told Deputy Mayor Hoskins and his staff that Virginia officials are courting them and that they are considering options such as Arlington. That shouldn't be a surprise. All corporate executives try to negotiate subsidies for jurisdictions where they have offices.
At the Tysons Corner software company I co-founded, we are frequently telling local officials where we have branch offices (Norman, OK and Charleston, SC) that we might move. We have received over $100,000 in subsidies over the past 3 years as a result.
But these cities only allow us to spend the subsidies we received on training for local employees in new positions that we add. That makes a lot of sense, because if we do leave, we will leave behind smart engineers who will go looking for jobs with similar companies.
Those jurisdictions are selling their locales based on value, not based on price. Such targeted incentives are what help build a cluster of related firms.
Reducing the corporate tax payments of a company that primarily hires salespersons and copywriters, on the other hand, doesn't appear targeted to yield any specific return. By comparison, spending that $32.5 million to modernize an elementary school or increase the supply of affordable housing feels like a more responsible choice.
DC councilmembers, who will consider the proposed LivingSocial tax breaks, should ensure that the tax incentives will actually help make DC a tech hub. Corporate subsidies and tax credits can benefit the District as long as the subsidies are vetted in a transparent, rigorous process that demonstrates specific benefits to DC residents. A tax break for LivingSocial could do that, but as it's structured right now, it wouldn't.
Development
Gray administration holding up Reservation 13 for Redskins
Mayor Gray's office is stalling any progress on a plan to build a new mixed-use neighborhood that has widespread community support, because they'd rather turn over the land to the Washington Redskins for a practice facility that won't do anything for the community or DC.
7 ANC commissioners met last night with Victor Hoskins, DC's Deputy Mayor for Planning and Economic Development to discuss "Hill East," also known as Reservation 13. After a long process with thorough public participation, DC created a plan to build a "vibrant, mixed-use urban waterfront community" on 50 acres of the site.
Based on reports from ANC commissioner Brian Flahaven, it appears that vibrancy and tree-lined public streets are taking a back seat to large empty football field-sized spaces closed to the public:
The Mayor's Office is continuing to negotiate with Dan Snyder and the Washington Redskins to build a training facility at Reservation 13. Until the outcome of the negotiations is determined, any development plans for Reservation 13 remain on hold.It's possible to vaguely imagine a way that a practice facility could be part of a mixed-use neighborhood. For example, the Redskins could build practice fields and any necessary parking entirely underground, then put surface streets, parks, and buildings on top of them. Their offices could occupy a building with ground-floor retail that's open to the public.Commissioners strongly pushed back that the community must be involved in the decision about a training facility on the site and expressed frustration that the Mayor is not seeking feedback from residents. Deputy Mayor Hoskins said that his office is not involved in the negotiations. ...
The Deputy Mayor said his office should know whether the city will pursue a training facility or continue with the current development plans in 30 days. If plans for a training facility do not move forward, he said that the city would return to development plans approved by the community. ... The Deputy Mayor also said that any training facility proposal would have to be consistent with the zoning for the site. ...
All 9 Commissioners, representing Wards 6 & 7, agreed that Mayor Gray needs to come out to the community and explain how a potential training facility fits into the master development plan agreed to by residents.
Dan Snyder could build all of this entirely with his own money, in this very urban way. But does anyone seriously believe that is possible? This is the guy who tried to charge people just to walk into his stadium instead of paying huge parking fees. Would he actually want to design practice fields that fit into a good neighborhood landscape when he has a perfectly good, entirely private facility in Ashburn?
Maybe if the District built the whole thing and gave it to him for free, he'd accept the deal, but it would be a terrible bargain for taxpayers. If he paid money for it, why would he want to spend extra money just to essentially make the facility invisible and unobtrusive?
Certain city leaders seem to believe that bringing the Redskins to DC is worth virtually any cost simply for the civic pride involved in having an NFL team inside one's borders. We know Jack Evans has a massive blind spot for organized sports. He abhors spending government money on anything except sports facilities, where the sky's the limit. We know that Michael Brown doesn't know any better. We should expect better from Mayor Gray.
Correction: The original version of this article had a sentence about criticism of DMPED. However, since Hoskins said the negotiations are not coming from his office, this is not relevant. The sentence has been deleted.
Development
A new West End Library is a good deal for DC
Last night, the DC Zoning Commission considered the proposed new West End Library and fire station development project. Despite broad support in the community, some activists now object to the plan because it doesn't contain as much affordable housing as hoped. But residents and the Zoning Commission should support this important project.
The project will rebuild the outdated West End Library and nearby fire station at no cost to the DC government, using the air rights of the public parcels combined with some private land. The new library will provide benefits to the community, including a café and public meeting spaces.
Retail and housing will fill out the block and help make the place a lively place to walk. In all, about 164 residential units will be built above a new library, and a new fire station will be built with housing above.
There is no government budget to replace these obsolete public facilities. If this mixed-use project doesn't move forward, there will be no new library and no new fire station. The decrepit buildings and parking lots will stay as they are.
In its Planned Unit Development (PUD) application, the developer has asked for an exception from Inclusionary Zoning (IZ) on the library site (but not the fire station site), along with several other exceptions which often happen in PUDs. IZ requires offering 8% of housing units to households earning 80% Area Median Income (AMI) or less.
The developer, Eastbanc, and the Deputy Mayor for Planning and Economic Development (DMPED) claim that the entire value of the development rights are being used to pay for the new library and fire station, and there's no additional subsidy left over for the IZ units on the library site or more affordable units on the fire station site.
Originally, the District had promised 52 affordable housing units for very low income households (at 60% AMI) above the fire station site, but DMPED doesn't appear to be offering the needed additional subsidy for this component.
This is a big disappointment. We would prefer to see the District provide the financing to create the 52 very affordable units above the fire station. That would be far more beneficial than simply following IZ. At this point, unfortunately, the proposal is to give the library development with the 164 units above an IZ waiver, and to build housing above the new fire station, including the IZ units required for that fire station parcel alone.
The question of how to deal with the shrinking footprint of affordable housing in this complicated public-private development deal is a hot topic. Chris Otten, an organizer with the DC Library Renaissance Project, sent an alert asking people to attend tonight's hearing and oppose the project because of the affordable housing exception request.
We think this is short-sighted, and dismisses the value of the new library and fire station as major public benefits. A good compromise would be to move the IZ units to the fire station site, if DMPED does not come through with the financing for the preferable 100% affordable project above the fire station.
The PUD process does allow for outstanding public benefits, like a new library, to enable relief from IZ standards. The DC Office of Planning has accepted this, calling the new library and fire station exceptional amenities that fulfill the PUD's standard for allowing relief to some zoning requirements. We think it's possible that IZ could be part of a feasible project at the fire station site, if the Zoning Commission presses for it.
Some DC activists are fundamentally opposed to public-private partnerships, which leverage private development to help pay for public benefits. We share the concern that the public land valuation process should be more transparent so we can ensure city residents are getting a good deal. But better utilizing scarce land with great public facilities, new housing, and commercial space should also be recognized for the benefit that it is.
DC lost the opportunity to build mixed-use libraries at Benning Road and Tenleytown, both of which offered affordable housing and other amenities. These projects would have used funds budgeted for renewed public facilities and private development rights. In the West End case, where there's no budget to fix the library, the public benefits couldn't be clearer. If we do not advance this mixed-use project, we keep the obsolete library and fire station and wait for the city to find the money to pay to replace them one day.
We also lose the benefits a mixed-use building offers: a café connected to the library and separate community meeting space that can be used outside of library hours. These features were sought by residents discussing other library projects, but were unrealized as all other libraries were rebuilt as single-use, stand-alone buildings. A mixed-use building also better utilizes precious city space with hundreds of new homes and shops, within walking distance of downtown.
This is the essence of the notion of public land for public good. Rather than building a small replacement library on a city-owned plot, let's take full advantage of the site and add housing (especially affordable housing), a café, and other community amenities. On future public land deals, the Gray Administration should continue to ensure that the full value of a city-owned site is used We have an important opportunity to create a state-of-the-art public library and fire station, save the city tens of millions of dollars, and deliver added benefits through an innovative mixed-use building design. That's why we should support this innovative project. For more, read my testimony to the Zoning Commission in support of the project.
Development
Will Thomas push for local business and good urban design?
Harry Thomas, Jr. will lead the DC Council's Committee on Economic Development next year. In a press release, Thomas notes his plans to continue "building on what he has accomplished in this area for Ward 5." The trouble is, Thomas' development record in Ward 5 is spotty, at best.
Suburban-style, big box-anchored retail development is scattered throughout Ward 5, such as Rhode Island Place, Rhode Island Avenue Center, and Hechinger Mall.
With part of Thomas' new duties including oversight of the Department of Small and Local Business Development (DSLBD), one might expect him to focus on revitalizing the city's struggling commercial corridors. Instead, we have a Councilmember who has often championed more of the status quo.
In his November 15 testimony before the DC Zoning Commission on proposed car and bike parking regulations in the zoning code, Thomas said,
"I have recently spoken with representatives of several retailers who are interested in developing large, multi-tenant shopping centers in the District.... There are ... a number of locations in Ward 5 and other outlying Wards with blocks of land large enough to accommodate these developments, but without convenient access to Metrorail. Placing a cap on parking citywide, in a one-size-fits-all approach, would limit the desirability of these locations and have an adverse economic impact on the District."We now know that Thomas was alluding to Dakota Crossing, with a planned 3,000 surface parking spaces, as well as the still developing plans for four Walmarts.
At the same time, Thomas knows very well what progressive urban infill looks like, and has helped usher it in during his tenure in Ward 5. Rhode Island Station, The Flats at Atlas District, and developments near Catholic University build on a multi- and mixed-use platform with retail space for small, local businesses.
While we continue to hear Thomas' lip service about the jobs and tax revenues that will be brought by new big boxes, our main streets continue to flounder. The Rhode Island Avenue Great Streets Initiative, for example, seems to have fallen off of DMPED's radar.
Can Thomas, who will have oversight of DMPED as Chair of the Committee on Economic Development, push for movement on a plan that could link the District's side of this important gateway with the revitalization that is happening just across the border in Mt. Rainier and Hyattsville?
While Brookland's 12th Street NE commercial strip received streetscape improvements, it still struggles to attract new businesses. North Capitol Main Street, Inc. continues to make strides in promoting local businesses, but will it find itself competing against a suffocating surge in big box, large-scale infill?
Will economic development East of the River under Thomas be focused on a blend of large- and small-scale development, or will bigger continue to be touted as better?
Thomas has proven an ability to work with developers and corporations on large projects. He knows the language of urban design and of Main Street commercial revitalization.
Unfortunately, a disconnect appears to exist between Thomas' advocacy for the bigger players and the smaller operators necessary to foster vital, dense cores in our neighborhoods. As he leads the Committee on Economic Development for the next four years, his actions will speak louder than words, particularly as we work our way out of the current recession.
Without a balance of both local and national retail outlets, small- and large-scale development, we will continue to see big box nodes favored to the detriment of our underutilized retail corridors, and we simply cannot afford that.
Education
Downtown needs a school more than a boutique hotel
Representatives from the Deputy Mayor for Planning and Economic Development and the DC Department of Real Estate Services got an earful last Thursday night at a hearing on the proposed plan to declare the Franklin School building a surplus property.
Declaring it surplus would clear the way to sell or lease the building, located at 13th and K Streets NW, to a private developer. A packed room full of DC residents and interest groups expressed opposition to the plan, urging city officials to reconsider the many public uses for this building, despite the prospects of high renovation costs.
The Franklin School is a historic Adolf Cluss-designed building that was used as a homeless shelter until 2008. For years the city has been trying to declare the building surplus so they could sell it to the developer behind Potomac Mills Mall and Washington Harbor to turn it into a boutique hotel.
The city paid the developer half a million dollars in a legal settlement after Mayor Williams bungled the sale last time around, not seeking Council approval. Judging by online editorials and comments made at the meeting, homeless advocates, preservationists, and education advocates are united against the surplus action.
I myself testified on behalf of educational uses of the building, asking city officials whether they understand the public benefits of a downtown school. (I was a co-founder of a charter school that applied to use the Franklin School building and was rejected.)
Understandably, the renovation costs are high and the space is not ideally suited for young children. But that does not mean that the building could not house a high school, UDC law school, or some other educational facility that would honor the legacy of Cluss and draw students from all over the city to a flagship building in a central location. Regardless of which public use is determined to be best, we need a more thoughtful and transparent analysis before the city moves forward with the plan to surplus Franklin.
The historic protection of the building's interior and exterior and the many years of neglect will surely drive the renovation costs even higher. Seeking a private entity to take on the risk and covert the building to a revenue-generating use is understandable. So has someone run the numbers to show what the revenue stream will be net of tax abatements? Did the city have estimates of renovation costs (and did they share them with prospective bidders before the last Request for Offers)? Does the city have estimates of net employment and revenues that will be created by the best commercial use? These numbers would help DRES and DMPED make their case more than assertions about it being "costly" to renovate and that other uses are "not viable."
Someone described schools to me as "non-revenue generating" uses, but what about income and property tax revenue generated by residents who choose these schools over Montgomery County or Fairfax County schools and bid up the value of DC real estate? It's hard to know whether such revenues are a major or minor factor until you run the numbers.
A central location for a school is something that cannot be replicated by locating schools on the fringes of the city, as is now being done with many charter schools. A central location like Franklin Square provides a unique opportunity to draw students from all four quadrants to a racially and economically integrated school, and one whose stunning historic facade could house a flagship facility that would have symbolic value for the city. Has DRES or DCPS come up with a different site that could accomplish this?
What about the homeless? Has the city demonstrated that the savings from surplusing this building will make it possible to serve the needs of displaced homeless men somewhere else? Mayor Fenty asserted that this was the case when he closed the shelter two years ago. Perhaps the analysis is sitting out there somewhere and I haven't found it. If anyone has economic analysis supporting uses or alternative uses of the building, I'll update this post with links.
Arts
Dupont tunnels likely to contain arts and a winery
The Arts Coalition for the Dupont Underground, which seeks to develop the old trolley tunnels into arts space, is the only eligible bidder and will likely soon begin lease negotiations, representatives from the coalition announced last night. Besides including arts space, they hope to include a restaurant and winery.
The coalition will seek a 50- or 100-year lease on the space from DC. To afford the ongoing costs, they plan to use some of the space for arts events and some for the restaurant and winery or other "concessions." A winery would use the underground space to actually make wine as well as serve it.
The first phase of the project would cost $10 million to build, including 20,000 square feet for arts and 20,000 for the businesses. The full space is 100,000 square feet. No money will come from the DC government as part of the deal.
Besides the concession revenue, they hope to rent out the space to other large arts organizations, like the Phillips, Corcoran, and Katzen Center, who sometimes need larger spaces than they have. They are also talking with the Corcoran about giving some space to artists as long-term studio space, similar to the Torpedo Factory in Alexandria.
There was one other bid, to operate a winery, from the group that owns Buffalo Billiards and other pool halls. According to architect Julian Hunt, DMPED extended the bidding deadline at the last minute so the winery group could submit a bid. However, Hunt their bid was ultimately found not to qualify. The Arts Coalition has reached out to that group to see if they would still like to run their business as one of the concessions.
There are two tunnels, one on either side of Connecticut Avenue, each with four stairways. The team expects to turn some into elevators including a freight elevator. Others may become openings for mechanical equipment like HVAC.
Some neighborhood leaders have asked about the possibility of returning the space to trolley use if one day DC builds a streetcar on Connecticut Avenue. Streetcars are unlikely to come to Dupont soon since it's already well served by transit, doesn't need economic development, and reopening the tunnels at the ends would require ripping out the existing medians. Still, it would seem to make sense to structure the deal so that DC could get the space back sooner, perhaps with some payment, if circumstances changed and DC determined it to be worthwhile.
Politics
Does Fenty believe enough in our issues? Does it matter?
Adrian Fenty has aggressively reformed education, made the city more walkable and bikeable, added housing, attacked crime and more. He's hired some great people (and some not so great people). Does he deserve reelection on that basis?
One nagging thought in my mind is whether the Mayor's support for Smart Growth or sustainable transportation is really heartfelt or strong enough. In education, there's no question where the Mayor's heart lies. He's absolutely, 100% for education reform, and he stands behind everything Michelle Rhee does. The same goes for public safety and Cathy Lanier.
But in other areas, sometimes his commitment to this vision is tepid, and in other areas, the vision is itself poor. On education, he knows where he needs to be. On transportation or planning, he has people who can explain where he needs to be. On economic development, he doesn't have either.
It's okay for Fenty not to be able to articulate a vision in great detail, or be as policy wonkish as Vince Gray. But I'd prefer him to be willing to stand behind his "A+ people" who have that great vision. Mostly, he does, but sometimes, when the chips are down, he doesn't, and not necessarily with a good reason.
Look at the sidewalk debate, where he intervened to stop sidewalks in North Portal Estates when some residents complained. When he sat down with me for an interview, he said that if some blocks really don't want sidewalks, he didn't want to push them. "Everything in moderation," he said.
Everything except school reform, you mean. When Michelle Rhee fires a school principal, even if almost all the parents at that school protest the decision, he stands behind it. Why does he do that with schools but not sidewalks, I asked?
Fenty replied that while he sometimes gets involved in high-level policy issues in transportation or education, he leaves specific engineering details to the experts, and thinks like firing a principal are the equivalent of engineering. But then what about the Pennsylvania Avenue bike lanes, where the experts designed an arrangement which the traffic analysis backed up, but then DDOT ripped it out before even launching it?
Well, that time, Fenty did intervene in engineering, but that's because the first draft hadn't taken everything into account, he explained. Maybe so. Though some people are pretty sure Michelle Rhee has made a few decisions that didn't take everything into account either.
Vince Gray says he's going to ensure everyone has a say in policies, though he will ultimately make the decision and go forward. Fenty is prioritizing action over participation. That's a legitimate style difference, and there are pros and cons to each, but why must Fenty be inconsistent and a bit disingenuous about it?
The starkest example of this was on inclusionary zoning, which his administration stonewalled for two years while numerous projects got built or got zoning approvals without any affordable component. Why did he do this, I asked?
"I'm a believer in the saying, 'measure three times, cut once,'" he replied.
Really?
His administration has done a great deal of good, but measuring carefully has not been the hallmark of his tenure. Again, some argue that it's better that way. But he doesn't defend moving quickly and the design-build process; he instead claims he only moves with great care... except when he doesn't.
So what if he isn't consistent? He's got cabinet officials who are feeding him stats and good policy ideas, and almost all of the time, he goes along. He often incorporates these good ideas into his speeches and his overall visions. Is that a problem?
What I worry about most is what would happen if, say, Harriet Tregoning left. Would the Mayor definitely replace her with someone equally committed to a similar vision? Or would he put in someone from DMPED who simply does the bidding of developers and wants to get as much done, regardless of what exactly is getting done or whether it's good?
A change in the head of a department can cause some pretty rapid change. Just look at DDOT after Gabe Klein came in or, even more starkly, NYC DOT after Janette Sadik-Khan. A DMPED lackey heading up OP might trigger a 180° turnaround in that quality of that department in no time.
Of course, we don't know who Gray would pick either, or how strong his commitment to these areas would be. On Smart Growth, I'm pretty confident. On transportation, his thinking may not be so clear, at least not yet.
And herein lies the issue. I could decide instantly whether to vote for Fenty or Gray if I knew exactly who would comprise their cabinets. But we definitely don't know for Gray, and while we know a lot more for Fenty, there's still some uncertainty. When the Mayor is really not as well versed in some of our issues as he could be, doesn't strongly stand behind the key principles, and has some bad people in related areas, it creates some doubt.
Development
Should urbanists be nervous about Vince Gray? Part 3: Does Gray believe in Smart Growth?
This one is easy. On Smart Growth, Gray is on the right side.
Sorry, antis. It's true that many who oppose a growing city and think that a three-story townhouse is a skyscraper supported Vince Gray early, figuring he must be better than Mayor Fenty. However, they would be disappointed with a Gray mayoralty.
Gray recently walked along Wisconsin Avenue from Tenleytown to Friendship Heights with a group of residents of the area. They pointed out the many glaring flaws in Wisconsin's streetscape. There's the CVS at Wisconsin and Brandywine, where the sidewalk becomes a sharply sloped ramp to a roof parking deck leaving a 2-foot space for pedestrians between fences and telephone poles. Near the other end, there's the Western bus garage, a half-block blank wall right along Wisconsin and literally atop the Metro. And there are plenty of examples in between.
Gray nodded eagerly when residents and even his own campaign manager outlined their ideas for how Tenley Circle could feel more like a college town if more retail and housing accompanied American's plans to move the law school there. And his reaction bordered on incredulity when Friendship Heights residents told him that many people would oppose any new buildings on the site of the bus garage.
Gray is also very excited for the potential of "downtown Ward 7," the corner of Minnesota Avenue and Benning Road, to become a walkable hub for the surrounding neighborhoods (complete with streetcars!) His approach and that of Mayor Fenty may differ a bit only in implementation: Gray's approach is to plan then act, while Fenty's Office of the Deputy Mayor seems far more focused in simply closing real estate deals.
Sometimes getting the deal done moves the ball forward more than a plan, but when buildings last for 50 years or more, moving hastily can lock in bad design for a generation. In Ward 7, the Donatelli development at the northwest corner of Minnesota and Benning has shaped up to be a real disappointment even in ways that have little to do with the economy. DMPED chose Donatelli's plan despite community consensus around another bid. DMPED also plunked a parking lot down at 5th and I and totally blew it with the Tenley Library.
On development, Gray's approach will be to create a good plan and hear out all the opponents before moving ahead, while Fenty's approach has been to move ahead without any plans or much listening. Here, both approaches have merit, and I'd give a small edge to Gray's. Perhaps some bold planning and community engagement could have resulted in improvements along the Wisconsin Avenue corridor, where recent development has more often produced a boring low-scale bank rather than anything transformative.
But as one Smart Growth proponent recently pointed out, we are fortunate. We have two candidates who have made a clear commitment to many parts of a Smart Growth vision. They'd implement it with different styles and might focus on different elements, but four years from now, there will be more housing opportunities near commercial corridors and Metro stations regardless of who is Mayor.
Fenty and Gray share a lot of other policy ideas as well. Education reform? Fenty's for it. Gray's for it.
Next: But what about streetcars?
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