The DC Council gave final, unanimous approval to the plan for a soccer-specific stadium for DC United to be built on Buzzard Point, putting to rest any lingering doubt that the Major League Soccer franchise will find a permanent home in the city.
The plan calls for the District government to spend up to $150 million to acquire the nine-acre stretch of Southwest DC and upgrade its infrastructure, with the team itself paying another $150 million for construction of the proposed 20,000-seat park. The combined expenses will make the future stadium the most expensive venue in MLS history, according to a city-sponsored study published in November.
In order to pay for the city's end of the deal, the Council voted to take out another $106 million in new debt, and to move $32 million from funding for other capital improvement projects, including school construction and transportation upgrades. Council member and mayoral runner-up David Catania raised objections over taking money out of those items before ultimately voting in favor of the stadium plan.
"It is a victory for the team and its fans, the city, the region, and the sport of soccer in this country," United's managing partner, Jason Levien, says in a statement from the team. "Our new stadium will add to the positive development already taking place along the Anacostia waterfront. It will be a venue that makes its neighbors proud; it will help our city become the nation’s soccer capital."
But United can't stick its picks in the Buzzard Point dirt just yet. While arrangements are in place for the District to acquire land from Pepco, Mark Ein, and an industrial junkyard, the city still needs to make a deal with the development firm Akridge. The first plans for the stadium proposed swapping Akridge's two acres at Buzzard Point for the rights to redevelop the Frank D. Reeves Center at 14th and U streets, Northwest. That component died last week when the Council, led by Mayor-elect Muriel Bowser, removed the Reeves Center from the bargain after concluding its enviable location was undervalued in the original stadium plan.
Even with Akridge's land still in flux, DC's soccer crazies are already celebrating. United is hosting a party to fete the stadium deal at Penn Social at 2 PM, because soccer fandom apparently includes getting drunk in the middle of a workday to toast a public-private partnership.
Find Benjamin Freed on Twitter at @brfreed.
After years of vision statements about subterranean galleries, theaters, and restaurants, the plan to liven up the abandoned trolley depot underneath Dupont Circle is finally taking shape. The Arts Coalition for the Dupont Underground, a group of businesspeople with designs on turning the space into DC's next cultural hotspot, signed a five-and-a-half-year lease with the District on Tuesday to turn it into an arts and events venue.
The 75,000-square-foot space, a network of tunnels below Connecticut Avenue, has been mostly dormant since the District's last streetcars stopped running in 1962. It was used briefly as a fallout shelter in the late 1960s, and as a dingy food court in the early 1990s. The city picked the Arts Coalition in 2010 to eventually rehab the space.
Four years later, the organization has finally inked the paperwork, but the city won't be putting up any money of its own. Instead, the Arts Coalition is turning to a series of crowd-funding efforts, beginning with a $50,000 campaign on Fundable. It is also working with Destination Crowd Capital, a DC-based venture that seeks funding from established investors.
"The next five years will be a dynamic time of showcasing new artists and designers, new technologies, and the exciting possibilities this space presents," the group's founder, architect Julian Hunt, says in a press release. "We see the Dupont Underground providing cultural and economic benefits to Dupont Circle and to the District of Columbia."
It'll be a while before artists and entertainers take their shows below ground, though. The initial rounds of fundraising are just for cleaning up the tunnels and opening them to the public, with long-term exhibition plans still in the works, Hunt says.
Find Benjamin Freed on Twitter at @brfreed.
With its distinctive windows and pre-war architecture, the building that once housed the Central Union Mission is one of the most recognizable along 14th Street. But as its conversion (along with three adjoining rowhouses and a new rear addition) into 51 apartments nears its scheduled December completion, we were curious to see what it looks like on the inside, too. Project architect Eric Colbert agreed to give us a sneak peek inside a building that has had many lives: as an auto showroom, a homeless shelter, and soon, luxury rentals.
A long-overdue report on the proposed DC United soccer stadium suggests it could be the most expensive venue in the history of Major League Soccer. The report, ordered earlier this year by the DC Council but only released to the public Wednesday—after a general election—projects a stadium opening in time for United's 2017 season will cost $286.7 million.
The District and the team are splitting the costs, with taxpayers footing the bills for infrastructure and readying nine acres of Buzzard Point in Southwest for construction, and United paying for the actual building. The report, which was prepared in part by a firm run by former DC City Administrator Robert Bobb, estimates the public's end will cost $131.1 million, about 46 percent of the total, although a term sheet Mayor Vince Gray and United executives signed in July 2013 allows the city to spend up to $151.7 million. Building a 20,000-seat arena will cost the team $155.6 million.
Of the 19 current MLS teams, 15 play in soccer-specific stadiums, all of which have been built or completely renovated since 1999 at an average cost of $105.5 million. The most expensive stadium in the league right now is Red Bull Arena in Harrison, New Jersey, which opened in 2010 at a cost of $245 million, only 35 percent of which came from Garden State taxpayers.
More imminently, though, the stadium report also projects DC taxpayers will take a $25.7 million bath once it completes all the land deals to assemble the stadium zone. The deal involves getting a large chunk of Buzzard Point from the development firm Akridge in exchange for the Frank D. Reeves Municipal Center at 14th and U streets, Northwest, and smaller parcels from other landowners in exchange for cash or other plots of real estate. But according to the report, the Akridge's negotiated price of $55.6 million for the Reeves Center is more than $11.2 million below its assessed value. (Akridge, which would likely tear down the old municipal building and put up a mixed-use development at one of the city's hottest intersections, stands to gain even more in the long run.) Moreover, DC is overpaying for Buzzard Point parcels owned by Pepco, Mark Ein, and a junkyard to the tune of $19.4 million. (The city's expenses are offset by $5 million in cash from Akridge and United.)
The report isn't actually that grim over the longterm. It projects substantial benefits to the city, especially Southwest, if the stadium gets built. Economic investment over a 32-year period could support up to 1,683 full-time jobs, with financial benefits exceeding costs by $109.4 million over the life of the stadium.
Read the full report below.
Find Benjamin Freed on Twitter at @brfreed.
Developer JBG Cos. recently announced prices for its Atlantic Plumbing condos at Eighth and V streets, Northwest, with junior one-bedrooms starting in the high $300,000s to penthouses for $1.9 million. Though the 62-unit project won't be done until March 2015, Matt Blocher, JBG's senior VP of marketing and communications, says a third of the condos have already sold.
Named for the Atlantic Plumbing building that used to occupy the site just off U Street near the 9:30 Club, the JBG project consists of both the condos and a larger, 310-unit apartment building across the street, scheduled for completion toward the end of 2015. Look a block southward down Eighth, and you'll spot two other under-construction JBG buildings: the Hatton (condos) and the Shay (apartments), which should deliver in late spring.
For now, here's a sneak peek at the progress being made at the Atlantic Plumbing condos.
Frager's Hardware, a Capitol Hill institution devastated by fire last year, will return to its original location in about two years as the anchor of a mixed-use development, the store announced Friday. The neighborhood shop, first opened in 1920, will reopen at Pennsylvania Avenue and 11th Street, Southeast, as part of a new project from Roadside Development, which is in the process of buying the fire-ravaged site.
"We learned that the fire damaged the site so severely that, even with insurance proceeds, we could not afford to rebuild the site alone," John Weintraub, the store's longtime owner, says in a press release.
Since the fire in June 2013 that destroyed nearly all of the 94-year-old landmark, Frager's has spread its paint, garden, and equipment rental businesses among three Capitol Hill locations. Roadside says it will refurbish and preserve the original building's historic façade, which was left charred but still standing after the ravaging, four-alarm blaze. The rest of the store burned to a crispy husk. Investigators later determined the fire was most likely sparked by a smoldering cigarette butt.
Roadside is experienced in turning city landmarks from rubble to new developments. The firm was responsible for transforming Shaw's old O Street Market, which caved in after a 2003 snowstorm, into a massive new Giant supermarket capped by high-end apartments. The development on the Frager's site will be mostly the hardware store, and Roadside says it does not plan to seek any rezoning. Construction is expected to take up to two years.
You might recall that for a weekend last year, the corner of 17th Street and Rhode Island Avenue, Northwest, was briefly transformed into the District's largest pool, thanks to an epic water-main break. But at the ribbon-cutting Tuesday afternoon for 1200 17th Street—a 170,000-square-foot building developed by Akridge and Mitsui Fudosan America—everything was nice and dry.
The law firm Pillsbury Winthrop Shaw Pittman will take over five of the 11 floors, and part of a sixth, by January 2015 (the firm is relocating from the West End). That leaves 68,000 square feet still available for lease, if you can afford about $80 per square foot.
"Maybe 10 to 15 buildings can command that," says Gregory Tomasso, a vice president and managing director of Akridge's leasing team.
So what does Akridge say makes this one worth it? Its location between Dupont and Logan Circles and downtown, to start. It also boasts views of the Washington Monument and Jefferson Memorial, and an efficient layout that Benjamin Meisel, another VP of leasing, says will allow Pillsbury to shrink from its current 180,000 square feet to 105,000.
Find Marisa M. Kashino on Twitter at @marisakashino.
Updated Friday, August 29: Ari Gejdenson confirms his restaurant group, Mindful Restaurants, will open three places at Hecht Warehouse. In an e-mail, he says: "We're in the process of wrapping up the lease and I'm thrilled that Mindful Restaurants can be a part of the exciting revitalization of Ivy City and the Hecht warehouse. It's the most beautiful warehouse I've ever seen and, having grown up in NE, it means a lot to me that this historic building and it's surrounding neighborhood will once again be a thriving part of our city."
Unless you're low on gas, have a fast food craving, or want to spend the night in a cheap motel, there's not much to stop for along heavily industrial New York Avenue, Northeast. On Thursday, the city announced plans to attempt to rectify that. The five-year Ward 5 Works plan aims to adapt industrial land to encourage the growth of business, residential, and cultural areas.
It's good news for Douglas Jemal, president of Douglas Development, who made an early—and sizable—bet on Ivy City, the small neighborhood just off New York Avenue, with Hecht Warehouse District. Housed in the building formerly used as the distribution center for Hecht's department store, the project is slated to bring 350 apartments, plus retail and restaurants. By January's groundbreaking, Jemal had lined up two retail tenants for the space: Mom's Organic Market and Planet Fitness.
As it stands now, though, it's tough to imagine, say, a Banana Republic or a trendy restaurant setting up shop there. But Jemal insists that's exactly what's on the way. During a conversation with Washingtonian earlier this week, the developer shared this list of tenants that he expects to open in the Hecht project: Banana Republic, Gap, Nike, Petco, Busboys and Poets, and three restaurants from the restauranteur behind Ghibellina (on 14th Street, Northwest) and Acqua Al 2 (near Eastern Market). We've reached out to Busboys owner, Andy Shallal, and Ari Gejdenson, owner of Ghibellina and Acqua Al 2, for comment, and will update if we hear back.
Construction of the retail space is scheduled to begin early next year—we'll stay tuned.
Find Marisa Kashino on Twitter @marisakashino.
PN Hoffman’s cranes have been hacking away at DC’s Southwest Waterfront for the development firm’s massive Wharf complex since March. While work continues on the $2 billion mixed-use behemoth, the company has announced its next project for the neighborhood—and it’s right next door to the Wharf.
PN Hoffman plans to build a 105,000-square-foot, 108-condominium unit at 600 M Street, Southwest, slated to open in early 2016. The new condo building, which will be re-addressed as 600 Water Street, will take the place of St. Augustine’s Episcopal Church, a 53-year-old congregation that once counted Supreme Court Justice Thurgood Marshall among its members. As part of the project, PN Hoffman is also building a new, two-story church for St. Augustine’s on an adjacent lot facing Water Street.
The Wharf—a multi-phase project scheduled to open its doors with more than 1,000 residential units and hundreds of thousands of square feet of retail, commercial, and entertainment space—has already transformed the area by clearing out many of the decades-old establishments from the waterfront. And PN Hoffman is the dominant player in Southwest DC, much like JBG is in the U Street corridor, where it has numerous projects.
People who buy at 600 Water—sales start next spring, PN Hoffman says—won’t have to depend on their neighbors at the Wharf for all their amenities, though. A press release for the forthcoming building promises a clubby atmosphere with a residents’ lounge, a courtyard with plenty of water features, and access to a new park.
Thursday is a big day for Washington’s soccer fans, and not just because of today’s pivotal World Cup match. The DC Council is finally holding its first hearing on the stadium Mayor Vince Gray wants the city to help DC United build on Buzzard Point in Southwest.
It’s been about a year since Gray, City Administrator Allen Lew, and DC United’s owners signed an agreement under which the District government would assemble the nine-acre stadium plot through a series of land swaps and provide adequate roads and utilities for a team-financed arena. Today’s hearing, a joint meeting of three Council committees that oversee government operations and the city’s finances, is the first of what Chairman Phil Mendelson predicts will be many. Here are a few things worth knowing:
The DC United stadium is a Vince Gray legacy project: Gray’s lame-duck period might be a lot less lame if he can get his stadium plan through the Council before his term expires at the end of the year. Someone else will be mayor when and if the stadium opens, possibly in time for the 2018 Major League Soccer season, but getting the legislature’s approval of the stadium deal would give Gray a brick-and-mortar feather to stick in his one-term cap.
The city’s end is more expensive than Gray’s people let on: Under the term sheet it signed with United last year, the DC government will spend up to $150 million in land swaps and cash to assemble and prepare the stadium plot. The most costly chunk concerns two acres on Buzzard Point owned by the development firm Akridge. In return for its piece, plus cash, Akridge gets the Frank D. Reeves Municipal Center, a city-government complex at 14th and U streets, Northwest, to transform into a high-value mixed-use development. But the value of the Reeves Center is widely disputed. Gray’s team is giving Akridge a purchase price of $56 million; DC Chief Financial Officer Jeffrey DeWitt says the Reeves Center is worth $76 million. When the stadium plan was first announced, the building was assessed at $128 million.
Along with $40 million in property tax breaks the city plans to give United over a 30-year lease and an estimated $20 million to move crucial city services out of the Reeves Center, the true cost to city taxpayers could approach $230 million.
The land swaps got ugly: The District has moved Akridge and Pepco out of Buzzard Point with the promise of city-owned land, but the deal for the rest of the stadium plot—owned by the investor Mark Ein and Super Salvage, a 62-year-old junkyard—was contentious. City officials threatened to use eminent domain against Ein and Super Salvage before settling on paying $50 per square foot for their properties, which Ein said last month is below-market.
Council members are skeptical of the deal: Mayoral candidates Muriel Bowser and David Catania are both generally supportive of building a stadium, but they have both questioned the logic the Reeves Center swap. Bowser, who runs the Economic Development committee, will hold a separate stadium hearing after the completion of a $200,000 economic impact study the Council ordered up last month. Catania told the Washington Post this month he believes the Reeves Center should be “uncoupled” from the stadium. Catania and Bowser aren’t alone in their hesitation about the land swap.
Other Council members are backing away for the stadium deal for other reasons. Tommy Wells, who was an early supporter of the stadium plan because it would benefit his Ward 6, turned against it after the Council’s budget made deep cuts to funding for the streetcar system, which is designed to eventually serve the area around the stadium.
DC United is packing the house: Unite for DC, a stadium support group the team organized, is packing the John A. Wilson Building with black-and-red faithful. More than 70 people signed up to testify before the Council, most of them soccer fans giddy at the prospect of a new stadium, including United head coach Ben Olsen. The team says it will also be feeding its fans throughout the day with treats from District Doughnuts and Ben’s Chili Bowl, which could add a new aroma to the fusty Wilson Building.
The team needs a new stadium: Most MLS teams play in newer, soccer-specific stadiums or relatively modern NFL stadiums. United plays its home games in 53-year-old RFK Stadium, a decrepit American football coliseum with few concessions for fans and limited amenities for players. While the current ownership group says it is committed to finding a home in the District, the franchise has flirted in the past with Prince George’s County and Baltimore. DC United also says it has lost money every year it has played at RFK.
No breaking for the World Cup: While many workplaces expect to see a massive drop in productivity for about 90 minutes (plus stoppage time) at noon today, the DC Council isn’t one of them. Despite the high likelihood that the stadium hearing will overlap with the US-Germany match, Mendelson says today’s hearing will not take a break. But soccer fanatics stuck at the Wilson Building aren’t out-of-luck. Gray’s office is turning his press briefing area into a screening room for the game.