Posts about Wheaton
Development
Wheaton's limits may also be its strength
On Tuesday, the Montgomery County Council unanimously turned down a plan by County Executive Ike Leggett to rebuild a portion of downtown Wheaton, favoring an alternate plan instead. Residents who supported Leggett's plan are frustrated at the defeat, but this wasn't the best path for redevelopment in Wheaton.
In recent months, Leggett and the council have disagreed on how to begin the redevelopment. Leggett proposed spending $42 million to build a new town square and a platform over the Wheaton Metro station for future development, while the County Council proposed spending $55 million to build the town square and offices for county agencies.
The council ended up voting for a a combination of both proposals, providing funds for a county office building and town square now and to study building the platform later.
The decision ends a long and often acrimonious debate over how to spark the redevelopment of downtown Wheaton. In February, Leggett's administration claimed that there wasn't enough money to pay for revitalization in Wheaton and a new Metro entrance in Bethesda, pitting supporters of both projects against each other.
When the council found funding for both projects, the conversation turned to the merits of Leggett's proposal. While County Council analyst Jacob Sesker wasn't opposed to building atop the Metro, he created the alternative proposals because he felt it wasn't feasible in the immediate future. Meanwhile, the Coalition for a Fair Redevelopment of Wheaton has expressed concerns about local businesses, calling for a more substantial town square or a community benefits agreement.
These questions led to accusations that the council was being meddlesome and was opposed to making Wheaton better. After the vote on Tuesday, resident Henriot St. Gerard wrote a scathing blog post on Wheaton Patch calling it a "show of disrespect" to the community.
I understand that people in Wheaton are impatient for change. I grew up in East County and started blogging six years ago because I wanted to see the kind of amenities that residents of Rockville or Bethesda enjoy right in my own backyard. But I too have had to grapple with a few uncomfortable truths:
Jobs are concentrated on the west side of the county and will remain there for a long time.
In 2010, there were 506,000 jobs in Montgomery County, 70% of which are located along the I-270 corridor. Bethesda alone has 87,000 jobs, more than Silver Spring, White Oak and Wheaton combined. Plans for additional employment growth in White Flint, the Great Seneca Science Corridor, and Germantown ensures that the west side will continue to remain the county's job center.
Companies located in East County aren't sticking around.
Last year, defense contractor BAE Systems moved a branch office from Aspen Hill to Rockville. The empty building added to an already high vacancy rate in the Kensington-Wheaton area, where nearly a quarter of all office space is empty, compared to just 11 percent countywide. Lee Development Group, which owns the building, will replace it with a Walmart because they concluded that the area was "a retail destination, not an office center."
Companies already located on the west side aren't interested in going east.
The county is planning to create a research and development center in East County called the White Oak Science Gateway around the Food and Drug Administration's new campus. Though the area enjoys the lowest office vacancy rate in the county, with just 6 percent of offices sitting empty, it's unclear who will fill them.
A recent report from planning consultants surveyed research and development firms located at the county's existing Life Sciences Center in Gaithersburg and found that wouldn't move to White Oak because they appreciate the proximity to other R&D firms along the I-270 corridor.
Officials are more concerned about keeping jobs in the county than where they specifically end up.
In addition to planning for future job growth on the west side, the county also gave subsidies to one company in exchange for moving there. Next year, Choice Hotels will move their headquarters from Silver Spring to Rockville with $4.3 million in loans and grants from the county, state and City of Rockville and additional tax credits.
Choice Hotels wanted to be closer to a Metro station, so having them move to Wheaton would've met both their needs and Leggett's goals. But after seeing firms like Hilton Hotels and Northrup Grumman pass up Montgomery County for Northern Virginia, county leaders were surely relieved that they decided to stay here at all.
Wheaton has many strengths: stable neighborhoods, diverse population, and a compact downtown well-served by both transit and major roads. But as a potential job center, it competes with larger and more established places like downtown Bethesda, the I-270 corridor, and others throughout Greater Washington. That's why earlier recommendations for redeveloping Wheaton, both from the public and planning experts, focused on housing, retail and entertainment in the short term, with offices coming later if demand warrants it.
Residents are both eager and worried that redevelopment will turn Wheaton into a place like Silver Spring or Bethesda, but we shouldn't be limited to those examples. Skeptics of Leggett's proposal don't lack faith in Wheaton's potential. They recognize that Wheaton's constraints and strengths, if properly harnessed, will let it grow into something else entirely.
Development
Dueling proposals leave Wheaton's future uncertain
Next Tuesday, the Montgomery County Council will choose a development proposal that it hopes will jump-start revitalization in downtown Wheaton.
Two competing proposals have emerged from County Executive Ike Leggett and the council for several publicly-owned properties in the area, both of which include significant office space. Leggett's proposal is larger and enjoys community support, but it may not make economic sense. The council's proposal is smaller, but takes a more deliberate approach to redevelopment.
While residents are impatient to see change in Wheaton, rushing into a redevelopment scheme that could harm existing businesses without quickly creating new value in is not in the community's best interest.
Leggett's proposal
In 2010, Leggett made an agreement with developer B.F. Saul to redevelop several county-owned parcels in the center of downtown Wheaton. On Parking Lot 13, located at the corner of Reedie Drive and Grandview Avenue, B.F. Saul would build a six-story, 250-unit apartment building with ground-floor retail and a new town square in a setup comparable to Bethesda Row.
The developer would also build a platform over the Wheaton Metro station's bus turnaround as the base for a hotel and three 14-story office buildings. With approximately 900,000 square feet, nine times the existing amount of Class A office space in downtown Wheaton, these buildings would bring about 3,600 workers to Wheaton's downtown every day.
Those offices would house the county's Department of Environmental Protection (DEP) and the Department of Permitting Services (DPS), both currently located in Rockville, along with the Park and Planning Commission, currently in Silver Spring.
The county would also like to find a federal government tenant, though the rent cap on government offices will require them to subsidize rent, as they already do for the National Oceanic and Atmospheric Administration's headquarters in downtown Silver Spring.
Leggett wants to set aside $42 million for the project, which would only cover the cost of building the platform. It's unclear how much it would cost to build the rest or whether the county or B.F. Saul would pay for it. Nonetheless, the proposal has been endorsed by the Wheaton Urban District Advisory Committee and Mid-County Citizens Advisory Board, another developer working in Wheaton, and the Gazette.
Council plan similar, but priorities are different
Concerned about the size and cost of Leggett's proposal, the County Council's Planning, Housing and Economic Development Committee offered a counterproposal last month. In their proposal, estimated to cost $55 million, B.F. Saul the county would build a new town square on Lot 13 with an underground parking garage, at a cost of $2.5 million and $5.6 million, respectively, along with a building for DEP and DPS for $46 million.
There's also room for the Park and Planning Commission if another $46 million is found to build another building. Both buildings would contain 415,000 square feet of office space and hold about 1,600 workers.
"It is misleading to say that $42 million will revitalize Wheaton," says Councilmember George Leventhal, who sits on the committee. (Full disclosure: I used to work for Leventhal.) "The only thing that $42 million buys now is a concrete hat over the bus bay, and if you want to relocate county agencies, the cost will go above $100 million."
Though local blogger Wheaton Calling accuses the council of "throwing a wrench" into the redevelopment process with their counterproposal, the benefits of Leggett's proposal remain unclear. The county's Department of Economic Development usually does a cost-benefit analysis of major public investments, like the $4 million big-box retailer Costco received to open a store in Wheaton Plaza, but they haven't done one for this project.
"The 'end' is not to build a platform, to execute a General Development Agreement, or to attract a federal tenant," writes Jacob Sesker, economic analyst for the County Council, in a report for the PHED committee. "Rather, the desired end is to introduce land uses (to wit, office space) . . . that downtown Wheaton currently lacks and which the market will not provide."
In a phone call, Sesker points out that in large-scale redevelopment projects, the best way to start is with the least challenging or expensive parts, like Lot 13. Those improvements will add value to the rest of the development, which makes the expensive parts more profitable to build later on, meaning B.F. Saul will require fewer subsidies.
The platform also has no direct benefit to the community by itself. "Unlike a school or a train, a platform does not teach any child to read and does not take anyone to work." Without those benefits, Sesker says, "If it is not generating revenue, then it probably is not a good investment."
"The County Council is the steward of public money," adds Leventhal. "If we're going to spend that money, it's reasonable to ask what this will do for taxpayers. We have to be very cautious about our decision, and we need much better analysis than what we've gotten."
Some still say offices just don't make sense in Wheaton. In 2009, a group of real estate and design experts commissioned by the Urban Land Institute to offer recommendations for redevelopment concluded that there is "no inherent reason" for offices to locate there:
The panel heard from a number of stakeholders that there is a desire for more office space in the CBD, in order to bring in greater daytime foot traffic . . . Wheaton is not well-positioned to attract development of, or users for, new large-scale office space. There are simply too many other office centers within the region that possess greater strengths, particularly in the near-term, where so much new office space has recently been built.Instead, the panel suggested building apartments and townhomes to draw young professionals being priced out of Silver Spring, as well as chain stores and restaurants to Wheaton Plaza to "anchor" the downtown, and developing a small music venue to take advantage of its proximity to the renowned Chuck Levin's Washington Music Center.
On Lot 13, the panel proposed a town square and a smaller "2-3 story building" with shops and apartments. Like Sesker, they recommend waiting to build over the bus turnaround, as that site is the "most valuable" in downtown Wheaton and has "the potential for the greatest density." This vision, particularly its focus on music and entertainment, fits in with earlier proposals for Wheaton that were well-received by the community.
No matter what the county does, they should heed the ULI panel's warning on any development in Wheaton: "Wheaton's strengths, such as its eclectic retail mix, are also quite fragile, and could be irreparably harmed by any redevelopment projects that are ill-conceived or rushed. Thus, the panel recommends a gradual approach to redevelopment," they write. "An attempt to force a desired result . . . would not only fail, but would also end up undermining the unique identity that Wheaton already possesses."
We've been waiting for a new Wheaton for twenty years, so it's understandable some are impatient. But rushing into any project without a thorough understanding of its potential costs and benefits could destroy what people already like about the old Wheaton while limiting its future potential.
Pedestrians
Montgomery continues "pedestrian removal" in Wheaton
A growing number of residents in Wheaton primarily travel by bus or on foot. The area's car-centric infrastructure makes life difficult and dangerous. But instead of helping pedestrians, Montgomery County's transportation department is putting up new barriers against them.
Randolph Road has room for a wide, grassy median that gives drivers a pleasant view. Yet its sidewalks are too narrow and dangerously close to the road. Pedestrians, sometimes with heavy loads of groceries, face constant danger as they walk inches away from high-speed traffic.
At Randolph Road and Viers Mill Road, there is a strip mall with an entrance in the middle of a 1000-foot-long superblock, directly across from an entrance to a McDonald's. There is no entrance directly to the strip mall from the corner, near the existing crosswalk.
Many pedestrians crossing from one to the other naturally take the direct route between them (the blue arrow above), rather than walking to the end of the block. This is far quicker, does not require walking on the dangerous sidewalks, offers a refuge in the middle of the highway that is lacking at the intersections, and avoids the risk of getting hit by a turning driver.
But Montgomery traffic engineers prioritize moving as many cars as possible through the road as fast as possible. Pedestrians crossing in the middle of the block interfere with this. Rather than provide a safe and convenient crosswalk, add a traffic signal to move toward more urban block sizes, or address the sidewalk safety problem, Montgomery's Orwellian-named Pedestrian Safety Program has built a fence to keep people from crossing the street.
This is only one example of how Montgomery's disproportionate focus on automobiles harms other road users. Until the county realizes that it needs to plan to meet the needs of all users, pedestrians will continue to suffer from unsafe and inconvenient conditions.
Public Spaces
What does Wheaton need?
Improving or redeveloping Wheaton is on the Montgomery County Council's agenda for this capital budget. The council is considering a County Executive proposal that would have a profound effect on the core area around the Metro station.
We have a big decision to make. As Councilmember Nancy Navarro says, Wheaton's time is now, and I am working with her and other county officials to put a plan into place.
Here is the question: What does Wheaton need? And how do we get it?
Everyone agrees that Wheaton needs more customers for the businesses there. The question is how to generate more customers.
Here's my approach. I think Wheaton's downtown is sorely missing a public place to go and just spend time. I know, for example, that if I go to Downtown Silver Spring, Bethesda or Rockville, I can spend several hours with my family without having to move the car. I can pick a destination Wheaton has many businesses to support this but it lacks a central place where people can gather. It lacks an Ellsworth Drive or Bethesda Row Wheaton's core already has many great shops. Some of my favorites there on Triangle Lane include Marchones, where I buy the best deli sandwiches, Showcase Aquarium, and one of the region's coolest stores, the Toy Exchange, which has vintage toys, from Star Wars figures to Lionel trains. In the surrounding blocks, there are notable restaurants such as Pho Hiep Hoa (where I discovered Pho), Nava Thai, Full Key, Hollywood East, Ren's Ramen, Caramelo Bakery (with the most spectacular saltenas), and the list goes on.
But what Wheaton does not have is a connecting space to weave the shops, and its identity, together. Typically I have to park at one restaurant and then get back in the car to drive to another location, which is a real pain with kids. I end up spending additional money somewhere else.
In my view, Silver Spring is a success not because of any particular office building in the area, but because of the public space that was created and the sense of identity it fostered. People just love going there.
Wheaton could have that, too. Wheaton has plenty of potential customers in the surrounding neighborhoods, but I suspect that many of them prefer to go out to other destinations that have more street life. They spend their money somewhere else, too.
It is hard to create street life in a parking lot, which is what we currently use as a big space at the center of the urban core.
If we are going to make Wheaton a real destination with appeal to families, teens, singles and everyone, we should start by building an urban park.
What is an urban park? My favorite is the spectacular Yerba Buena Gardens in San Francisco, where I've spent hours soaking in the city. While I don't think we can go that far, we do have nearly $42 million proposed in the capital budget for Wheaton redevelopment.
We also need to remake Triangle Lane, pictured below, so that not only cars and delivery trucks can access the area but people can walk around in an enriching environment. We could have a wider storefront sidewalk for businesses and customers, pavers, lamps, benches and trees. Triangle Lane is, after all, "Wheaton Row."
Finally, reaching a little further out into the orbit of the urban core, we should get the new Wheaton Library and Recreation Center built as fast as possible. A quality community amenity like that will go a long way to getting residents in the surrounding area even more engaged in their own local community, and it may help attract new, higher income residents to the area.
Wheaton certainly needs new office workers to support the businesses, and the county needs to relocate agencies in order to reduce leasing costs. Fortunately, there are many places in Wheaton to locate new office buildings. We could even build a tall tower where the Mid-County Regional center is today.
We will see what the best approach is, but I am dead set against any construction impact that will wipe out the businesses on Triangle Lane. If these businesses have their parking removed during many years of construction, I am worried that many of them may not survive. There is a possibility that this approach will only end up sterilizing the small business ecosystem that makes Wheaton unique.
Wheaton is different, and we should take a different approach to economic development there. Don't wipe the businesses out and then build new. Nurture the core and let it grow organically. Make it a destination, and the people will come.
Budget
It's not Wheaton vs. Bethesda, but smart growth vs. bad
Montgomery officials say there isn't enough money in the capital budget to pay for both a new Bethesda Metro entrance and redeveloping Wheaton. But there is plenty of money, if only the county deferred some of the new and wasteful highways that will only worsen sprawl and shift the county's growth away from the places that can best accommodate it.
Wheaton residents are eager for a redevelopment project which will bring new offices, residences, a hotel and a town square to the area around the Metro station. Meanwhile, to prepare for the Purple Line (and ease crowding today), the county needs to add a second entrance to the Bethesda Metro.
County Executive Ike Leggett's budget eliminated funding for the Bethesda entrance, and general services director David Dise told the Wheaton Redevelopment Advisory Committee that the county could probably not fund both the $40 million Wheaton plan and the $80 million Bethesda Metro south entrance.
Actually, it can, easily. And it can afford $12 million for the Metropolitan Branch Trail, which Leggett also cut from the current capital budget. All the county has to do is defer some of the $359 million in new highways in the 6-year Capital Improvement Program (CIP). That $359 million is all for new capacity, over and above the necessary cost of maintaining the county's existing roads and bridges.
The projects include widening Goshen Road, which costs $129 million, but the justification in the CIP suggests it's not needed until 2025. Building Montrose Parkway East, for $56 million, will further despoil Rock Creek Park, while the completed western portion has already created a "Berlin Wall" that will hamper a future walkable, mixed-use neighborhood growing north of White Flint.
Widening Snouffer School Road and Snouffer School Road North, 2 projects costing $45 million, would meet "demands of existing and future land uses" in an area which "is experiencing growth with plans for future residential and commercial development."
Why does the County Executive claim that it doesn't have enough money for the Bethesda Metro, a necessary step for the Purple Line in the part of the county that generates the most tax revenue, and Wheaton, a prime spot for new mixed-use growth and an already-thriving community right on top of another Metro station, but can spend money on new roads in car-dependent areas which may grow in the future?
These new road projects would increase traffic congestion through induced demand, offer no economic development, and destroy irreplaceable Chesapeake Bay watersheds. Montgomery County has already agreed, through long public debates, to make the Purple Line, the Metropolitan Branch Trail, and growth in Wheaton top priorities. But Leggett's budget does not reflect this.
This is an unfortunate pattern with this County Executive. The Leggett administration consistently cries poverty when it comes to smart growth-oriented projects like these, or making Rockville Pike a boulevard in White Flint. However, it seems that no sprawl-oriented road project is too expensive to fund.
Whether it's putting up roadblocks to BRT, pushing harmful skybridges and underpasses, or a bizarre focus on resurrecting bad "zombie road" proposals from the 1960s, the County Executive's decisions do not embody Montgomery County's and Maryland's stated smart growth policies.
Fortunately, it appears the County Council does not share the County Executive's misplaced priorities. A council committee has since voted to restore funding for the Bethesda Metro entrance, and the full council will consider it soon. The council should also restore funding for the Metropolitan Branch Trail.
Despite claims to the contrary, these worthy projects need not compete with each other. The council can simply choose the least valuable of the plan's many expensive road projects and use the money to ensure Wheaton, Metro riders at Bethesda, the future Purple Line, and a valuable bicycle connection from Silver Spring to DC get the attention they deserve. Our county, state and region cannot afford more delay.
Development
Wheaton developer builds small, but thinks big
While County Executive Ike Leggett wants to give developer B.F. Saul $40 million of public funds to build on public land in downtown Wheaton, one developer's been building here with minimal help from Montgomery County for decades.
His name is Leonard Greenberg, and since the mid-1980's, his company Greenhill Capital has acquired nearly a third of downtown Wheaton, waiting for a real estate boom. When it passed him by, he decided to keep waiting while hatching bigger and grander schemes for the area.
“A believer in ‘city’”
I haven't always been kind to Greenberg's work, but after having a lengthy phone call with him earlier this week, I think it's time to offer his side of the story.
Greenberg grew up in the DC area, living briefly in Wheaton during the 1950's. After working for a Boston-based real estate investment firm on their D.C.-area projects, he struck out on his own and founded Greenhill Capital in 1974. In the 1980's, he's began buying and developing properties in Wheaton, anticipating the opening of a new Metro station.
"It was the last [central business district] that was scheduled to be developed" after Silver Spring, Bethesda and Friendship Heights, says Greenberg. "Plus, it was human scale. And there's something about the small proprietors."
Most of Greenberg's properties in Wheaton are single-story retail buildings, many of which were designed by Rockville architect Steven Karr. But he's always itched to do something greater. As he told the Gazette last week, Greenberg sees Wheaton as the next Adams Morgan, a vibrant hub for entertainment, shopping and culture. Not only that, but he knows how to do it.
"I'm a johnny-one-note. I've been saying this for 25 years, to get people on the street. I'm an urbophile. I'm a believer in 'city.' I get it."
If Greenberg had his way, he'd change liquor licenses to allow up to 75% of a venue's total sales to be alcohol, drawing bars and clubs. He wants a "county sponsored lease plan and economic program" to fill empty stores with theatres, artists and even university ventures. And he would've made sure that businesses displaced by redevelopment stayed in the area, unlike Barry's Magic Shop, which was condemned by the county to build a pedestrian walkway and received $260,000 to move to Rockville.
Finally, Greenberg would build lots of housing, both downtown and in surrounding neighborhoods, to create more foot traffic that can support local businesses. He's not convinced that B.F. Saul's plan to build offices over the Wheaton Metro will pencil out. "It costs as much to build in Wheaton as it does in Friendship Heights, but the rent multiplier is significantly higher," he explains.
In other words, tenants will pay more for an office in Friendship Heights than in Wheaton, no matter how nice it is. Meanwhile, rents for apartments in Wheaton are the same as those elsewhere in the county. "The county will have to heavily subsidize that office building," Greenberg told me on Monday, two days before Leggett's announcement.
After our talk, I e-mail Greenberg to ask what he thought about the $40 million subsidy B.F. Saul could receive. "Development would have occurred in Wheaton with bolder (even traditional urban) planning, but the county was too lazy and too anti-business for change to naturally evolve," he replies. "We never considered a [government] subsidy ... on any of our other projects."
“We're not apologizing”
According to Greenberg, any attempts to take Wheaton beyond the strip mall have been stifled by local opposition and red tape. "Boy, do I try to do more and better there," says Greenberg, "and you cannot imagine the resistance we have."
In 1990, the county passed a plan for downtown Wheaton that instituted a "Retail Overlay Preservation District." The district was supposed to protect small businesses while ensuring that new construction was of high quality. However, by limiting the density of new development and requiring that all new buildings be reviewed by the Planning Board, even ones that complied with the zoning code, it actually repelled investment.
"I absolutely abhor what the county has been doing all these years" in Wheaton, says Greenberg. "What they needed to do is have more density, more people to walk and support the urban core."
Upon buying the Anchor Inn restaurant at Georgia Avenue and University Boulevard in 2004, Greenberg envisioned redeveloping it with new housing and shops. It was the height of the real estate boom, when new apartments and townhouses were being built at the edges of downtown Wheaton. However, his proposal to build a 600,000 square feet mixed-use development on the site went nowhere because the county took too long to finish a new plan for the downtown, which was finally approved last year. "They wouldn't repeal the overlay district" in time, he grumbles.
In a Gazette article from 2006, Greenberg lamented that Wheaton "missed the train" on the economic boom. Instead, he built what zoning allowed: the smaller Georgia Crossing project, a series of one-story retail buildings that one resident called underwhelming.
"In the 1950's and 60's, Montgomery County was the standard by which suburbia was to be developed," Greenberg says. "The Wedges and Corridors [Plan], blah blah blah. But as we became more urbanized, they . . . tried to impose suburban standards on urban locations, without consideration to alleys and deliveries and urban edge and human scale, doors at the urban edge and creating a liveliness that was required."
That said, Greenberg isn't doing terribly well in Wheaton. He calls me out for using the above photo of Triangle Park, a shopping center at the intersection of Ennalls Avenue and Veirs Mill that he rebuilt after a large fire in 2008. The photo was taken in 2010 and shows the complex when it was new and empty. "That space has been leased for 18 months," says Greenberg. "We're getting mid-$30's [the leasing rate per square foot] and the parking lot is always full."
Not all of his tenants have been happy, though. In 2010, several disgruntled former tenants complained to the Gazette of broken contracts and unfairly high rents. One of those tenants was Eddie Velasquez, whose DeJaBel Café at Georgia Crossing opened in 2008 and closed 14 months later. Greenberg says it's simple why DeJaBel closed.
"If you owned a coffee shop, when would you open?" he asks me. "I guess 6 or 7 am, for people going on their way to work," I say.
"He opened at 9," Greenberg replies. Nonetheless, Greenhill got Velasquez a liquor license so the cafe could stay open at night, but even that wasn't enough to keep them in business. Cavan Wilk, suggests that it was a lack of foot traffic that killed DeJaBel Café, which wouldn't have been a problem if Greenberg had been able to build apartments on top.
"We're not apologizing" for the work Greenhill does, Greenberg says. "Think about the jobs we've created. We start people in businesses and we keep people in business."
“No one asked me to do it”
One place where Greenberg sees the county doing something right is in downtown Bethesda, where Greenhill Capital's headquarters are located. The difficulty of doing business elsewhere in the county, whether it's Wheaton's retail overlay district or limits on procuring liquor licenses, sends people here, Greenberg says.
Not surprisingly, the handful of projects Greenhill has built here are much better than those in Wheaton: buildings close to the street, a mix of uses, and little aesthetic flourishes here and there. And no parking lots.
On Cordell Avenue, a pizzeria he developed features trompe l'oeil, or an optical illusion of fountains along the sidewalk. "No one asked me to do it," Greenberg says. "I did it." Over at Woodmont Avenue and Elm Street is what Greenberg calls "the Haagen-Dazs building" after its former ground-floor tenant, which has since moved down the street. The building remains a nice, and fully-occupied, piece of urbanism: it's a mix of retail and office space, has lots of windows facing the street, and a little plaza in front that is occasionally used for concerts.
Then there's the Edgemoor, shown at the top of the post, a complex of condominiums and townhomes on Montgomery Lane that was developed by Greenberg and built by three local builders. He rattles off a list of high-end features: "Real copper gutters and downspouts, slate roofs on the end units, oak doors," he says. "And until they screwed it up, Georgian gardens. I had these really nice Georgian gardens, but they took out all of the benches." Greenberg also lives in the high-rise building, which looks like an old-school New York apartment house.
"I wanted something between the Dakota and the Plaza," he says.
Yet these accomplishments generally go unnoticed east of Rock Creek Park, where Greenberg's reputation (including on this blog) is as an unscrupulous landlord and purveyor of strip malls. "Nobody talks about the stuff that we've given or the contributions we've made," he says. "To put your name on the line for a construction project is far different than throwing spitballs at it."
As a result, Greenberg is content to wait. "We got so frustrated with the process [in Wheaton] that we said we'll go forward and we'll wait for the next generation to take it to the next level," he says. "We are constrained by a non-business friendly environment, and Montgomery County's paid the price for that. Developers are not willing to take the risk."
And they'll sit on their substantial holdings in Wheaton until everyone else comes around. "We have enough ground for 1.5 million square feet" of development under current zoning, he says. "We're interested in the right kind of deal. We're not interested in selling."
He adds, "We'll see if Wheaton's time is now."
Development
Old buildings are the key to affordability
All other things being equal, old buildings are usually more affordable than new buildings. Without the latest amenities, old buildings have to charge less in order to attract tenants. A healthy supply of old buildings is therefore crucial to long term neighborhood affordability.

The Cameron, a new apartment building in downtown Silver Spring. Photo from Behringer Harvard Residential, LLC.
Local governments are to be commended for adopting inclusionary regulations that require new projects to contain a certain percentage of affordable housing units, but this process has never been able to provide enough affordable housing supply to meet the demand. The only way to stabilize affordable residential rents in the long term is to increase the supply of old buildings.
Luckily, creating more old buildings is easy. We just have to build a lot of new ones and then let them age. Our problem in the short term is that not enough new buildings were built in walkable areas in recent decades, resulting in a dearth of old buildings today.
A friend's recent housing search offers an interesting example of the phenomenon.
Up until a few months ago my friend lived in a brand new, and quite expensive, building in White Flint. When they announced a rent increase, she decided to look elsewhere. I suggested downtown Silver Spring, thinking that the increased supply of housing units there in recent years would result in lower rents. After doing some research, my friend determined that rents in Silver Spring were comparable to what she was seeing in White Flint.
New buildings, it turns out, are expensive even if there are lots of them. Of course, Silver Spring's desirability in general has also greatly increased recent years, which is why there are so many new buildings there in the first place.
There are more people who are interested in paying to live in Silver Spring than there were a decade ago. While there are now more residential units than before, there is simply far more demand than the new buildings can accommodate to keep rents stable.
Just up the Red Line in Wheaton the situation is a little different. Wheaton is still a few years away from revitalization on the scale of Silver Spring. It is a much less desirable location. Therefore, one would suppose that rents there would be less expensive.
Because Wheaton is a less desirable location, it has fewer new buildings than Silver Spring. But it does have a few. If one compares the rents for a new building in Wheaton to those of a similar new building in Silver Spring, the listed rents are comparably expensive.
Despite the location differences, they are both new buildings. And new buildings have high rents.
Older buildings compete with newer buildings by offering lower rents.
In the specific case of downtown Silver Spring, the older buildings can charge almost as much as the new buildings because the area is so desirable that there is a supply shortage. If there were enough supply to meet the demand, the older buildings would be the first to become more affordable.
Buildings in the same location compete with each other for tenants. New buildings offer amenities, and old buildings offer affordability. Previously new buildings eventually become comparatively old, and therefore eventually have to compete more strongly on price.
The key lesson is that we must produce enough new urban buildings today to meet tomorrow's affordable housing needs. Our current affordability problems are due in no small part to a failure in the late 20th Century to produce enough urban buildings that we would today consider "old". We must not repeat that mistake.
Development
Retailers are embracing urbanism with zeal
As enclosed malls continue to decline and close, more and more retailers are opting to locate in pedestrian-friendly urban districts.
3 years ago, I expressed sentiments that the car-oriented shopping mall was a business model with no future. The events since have offered further proof that retailers and customers now prefer an urban format, at least in our region.
Recent news that Bloomingdale's in White Flint and Macy's in Laurel will close has little to do with the sales performance of those stores, and everything to do with their host malls being unable to survive. Both have been visibly declining for years, and will soon be redeveloped into mixed-use walkable urban places.
The Laurel Macy's has managed to remain open for years despite much of its host mall being shuttered. That store would likely have closed years ago if it wasn't making money, especially in the wake of the Great Recession.
Similarly, if it had not been profitable the White Flint Bloomingdale's would have closed in 2007 when another location of the luxury retailer opened a mere 3 Metro stations away.
Within the Favored Quarter, the most economically competitive and healthy part of our region, only the largest and most dynamic enclosed malls are continuing to thrive. The rest are slowly dying.
In Maryland, Montgomery Mall is the most vibrant, while in Virginia the Tysons cluster reigns supreme.
When the White Flint redevelopment plan was approved in 2010, it provided the owners of White Flint Mall the opportunity to earn a healthier profit by giving the market more of what it wants: walkable urbanism.
Elsewhere in the region the malls are doing as bad or worse. Most have either closed or are in the process of being converted to walkable town centers.
Arlington has had success turning the area around its two enclosed malls into mixed-use towns, first at Ballston and now at Pentagon City, where the process is still under way.
In Fairfax, Springfield Mall is slated for redevelopment, and Fair Oaks Mall is actively considering a mixed-use future.
In Prince George's County, the area around the Mall at Prince George's (formerly Prince George's Plaza) has been undergoing a process similar to Pentagon City. At Bowie Town Center, County officials are looking at adding more entertainment and housing options.
Meanwhile, urban shopping areas that I mentioned three years ago have increased in prominence:
In the District of Columbia, there are four shopping districts that support clusters of national retail chains that are usually mall-based: Downtown (Old Downtown clustered around Metro Center), Connecticut Avenue between Farragut Square and Dupont Circle, Friendship Heights, and Georgetown. Columbia Heights is emerging and has a different mix of retailers.Urban-format suburban shopping districts also continue to thrive and grow.
Silver Spring's retail is more vibrant than ever. The space vacated by Borders was quickly filled by Smart Toys. Bethesda and Clarendon are continually adding to their mixture of chains and smaller upscale retailers. Wheaton is a work in progress.
Even outside the Beltway, urbanism is catching on. Rockville Town Square and Gaithersburg's Washingtonian Center are growing, and National Harbor is setting the standard for Prince George's County. Two decades ago, all those developments likely would have been enclosed malls.
While purely car-dependent malls aren't going to go completely extinct, they are becoming far more rare. In the future, it is likely the only enclosed malls that remain will be the largest super-regional "winners" inside the Favored Quarter. Meanwhile, no new malls are planned.
As the 21st Century continues, both living and dead mall sites will be either be completely redeveloped or will evolve into mixed-use walkable urban places. Retailers will continue clustering at transit-oriented, walkable urban locations, both downtown and at new suburban "uptowns."
Zoning
How to make Wheaton into the next Adams Morgan (or not)
Wheaton is experiencing an apartment boom, where hundreds of new rentals will be built in the coming years. That's great for Wheaton, where small businesses will benefit from having more people living in the area, walking around and patronizing their shops.
Developer Leonard Greenberg, who owns over a dozen properties in downtown Wheaton, makes an interesting point about the apartment boom in a Gazette article. Greenberg suggests that with different zoning, Wheaton might become less strip mall and more Adams Morgan:
Leonard Greenberg, chief executive officer of Bethesda-based Greenhill Capital, planned to build 600,000 square feet of shops, apartments and office space in 2004 when he bought property at the intersection of Georgia Avenue and University Boulevard. He said the county council was too slow in approving zoning changes that would have allowed for taller buildings on the property, which is now a row of retail shops with a number of vacant properties.
"To me, Wheaton should be more of an Adams Morgan, more of a village-like environment," said Greenberg, who added the many apartment projects were an encouraging sign. "The reasons why places like Adams Morgan are popular is that they are high-demand areas where there's lots of activity. You have young people living in accessible locations. Wheaton needs to be a place where people want to go, not just go to work and leave at the end of the day."But let's be clear: The the real Adams Morgan is shops and restaurants at street level (most of which are locally-owned), apartments above, buildings hugging the street. The result is lots of activity and lots of people, just as Leonard Greenberg describes.
That's quite different from the things Leonard Greenberg has built. More specifically, below is an image of just one of several one-story, single-use strip malls he's built around downtown Wheaton over the past 25 years.
I'm sympathetic with Greenberg's argument that the county dropped the ball on allowing more development in Wheaton when the economy was strong. He understands that you need housing and retail to make a neighborhood vibrant like Adams Morgan.
Nonetheless, Greenberg still went ahead and built not one, but several new retail buildings in downtown Wheaton, all of which have several vacancies and whose former tenants complain of unfairly high rents. That wouldn't be a problem if, when the market improves, you could just drop apartments on top of his strip malls. But it's not that simple.
Instead, we have sizable chunks of downtown Wheaton that are stuck as strip malls and parking lots, and which will continue to be until those buildings wear out, which is probably several decades from now.
The Gazette article makes another interesting point about the Computer Building, which is located on Georgia Avenue south of Reedie Drive. Developer Lowe Enterprises wants to convert that building from offices to apartments, which would require displacing current tenants:Stuart Cohen would have to move his Environmental & Turf Services company, which he said relies on its proximity to the Wheaton Metro station for access to Washington, D.C. Michael Trembley runs the American Career Institute, a vocational school and one of the Computer Building's biggest tenants. Trembley said finding new office space near a Metro station would be a top priority for the school's nearly 300 students.It's ironic that the move would displace existing offices, given that the county and developer B.F. Saul, which have partnered to develop several acres around the Wheaton Metro station, want to build nearly a million square feet of new offices in the downtown. That space, however, will likely command higher rents than offices in the Computer Building, making it difficult for Environmental & Turf Services or the American Career Institute to relocate there, resulting in a possible net loss of the kinds of business, at least in part, that Wheaton development projects are trying to attract.
Vibrant urban neighborhoods come from a mix of uses like housing, retail and offices. Hopefully, the new Wheaton Sector Plan and zoning code rewrite will allow Leonard Greenberg to build what he wants, not just strip malls.
Vibrant neighborhoods also come from a mix of old and new. If we want downtown Wheaton to become Montgomery County's answer to Adams Morgan, we should retain existing businesses, be they a pupusa shop or a vocational school. Perhaps the county and B.F. Saul could work out some kind of subsidy for displaced businesses who'd like to locate in a new office building.
If we can do all of these things, we can ensure that Wheaton becomes an even better place to live or visit without sacrificing what already makes it so great.
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