New Towns (a/k/a Florida Market) PUD

I wrote a sample retail plan for the Florida Market District for consideration by ANC6C with regard to the Gateway Residences project/Zoning Commission Case 06-40 at 4th Street and Florida Avenue NE. This was in turn submitted to the Zoning Commission as part of ANC6C's submittals.

At another hearing today, I learned that the ZC included $2.5 million in small business support as part of the proposed order, which still awaits NCPC review and final approval in December. (I haven't confirmed this, but it was stated by the attorney for the Gateway Residences project.)

Such "community benefits" -- around small business support -- hadn't been part of the PUD discussions before the participation of ANC6C (and my retail plan, which stated that community benefits should be real and focused on further developing and improving the market). Now it's not money that I get to spend, but it's still a major accomplishment if true in terms of the awarding of substantive community benefits.

By way of example, the total amount of community benefits on the Dreyfus Station Place project was about $200,000, for a now $80 million+ project. (In fact, I had my hand in that too, although it was 7+ years ago, and I didn't know very much then.)

From the retail plan:

Suggested Community Benefits (proffers) from the Gateway Market project

A community meeting space, as offered currently, would likely be used sparingly. In the current plans as submitted by the developer, this space occupies a prominent and highly visible location on the ground floor at the corner of 4th and Morse Streets NE.

For the success of the Market more generally, this space should be used for an active retail business. If a non-revenue producing community space is located in what would be a high value retail location, this means that asking prices for retail rents in the other space in the building will have to be significantly higher, to make up for lost income. This will make it much more difficult to attract and retain independent entrepreneurs (current rents in the Market district are less than $20/s.f. and new leaseable space likely would rent for in excess of $35/s.f., and probably much higher). If a community space should remain as part of the program, it should be relocated to an interior location.

While a police substation could be seen as desirable, if it does not match the current force structure and program of the Police Department, then it is a wasted proffer. It is our understanding that the MPD has not requested the provision of space in the Florida Market to serve as a police substation.

Instead, CPC recommends that proffers from this project be directed to activities that will improve the Market District and will improve the success of the retail program of the Gateway Market building specifically:

• Support of public space improvements in the Market District;
• Support of marketing programs for the Market District;
• Support of a management program for the Market District such as the creation of a Florida Market “Main Street” program;
• Attraction of locally-owned businesses to the Gateway Market building specifically; which could entail the
• Provision of build out assistance to independently-owned businesses locating in the Gateway Market building;
• Rent reduction from what would otherwise be prevailing market rents, with first priority for locally owned businesses, and second priority for national chains; and
• Incentive payments to attract high-quality in-demand retail tenants.