JBG lawsuit against DC, Marriott over the Convention Center hotel

To me, the interesting thing about the lawsuit that JBG has entered against DC, claiming favored treatment of Marriott and special dealing, is that it is about the absolutely same behavior that was exhibited by DC Council in entering into a special relationship with the Sang Oh Choi interests to redevelop the Florida Market area of DC. See "Lawsuit is newest roadblock for District's long-awaited hotel" from the Washington Post.

This is a rare fight amongst actors who are normally co-working team players within the Growth Machine. As the Washington Business Journal suggests in this article, "What's behind JBG's convention hotel lawsuit?":

The lawsuit, which was filed in Superior Court on Sept. 4 — two weeks before the developer lost an administrative bid appeal — puzzled and dismayed many observers, who questioned why the company would fight over a contract it had not even pursued. Several sources interviewed for this story spoke on the condition of anonymity, as they were either not authorized to speak to the media or they wanted to maintain relationships.

One possible scenario, sources close to the deal said, is that JBG is using hardball tactics to gain leverage in an unrelated business dispute at the Marriott Wardman Park, which JBG owns with Los Angeles-based CIM Group. CIM joined JBG’s administrative bid protest but is not a party of the lawsuit, according to court records.

The target of the lawsuit, in other words, is actually Marriott, not the city, sources say.

We should all be familiar with the concept of separation of powers. Generally, laws that cover the Executive Branch are not extended to the Legislative Branch, unless specifically called for in the law, with the approval of the Legislative Branch.

It happens that DC contracting and procurement laws, at least right now, exempt DC City Council actions. The laws only cover the Executive Branch and its dealings.

Note that I am not a lawyer, but that was my understanding based on the multi-year somewhat unsuccessful/somewhat successful advocacy against the Sang Oh Choi urban renewal program for the Florida Market.

So JBG is likely to lose the suit on the merits, not because they are wrong to be concerned about special deals from City Council--although in normal circumstances their concern about this likely extends only to the contracts they get in this fashion --but because City Council lacks the same legal requirements over contracting that pertain to the Executive Branch.

That, to me, is the real issue here. Along with whether or not Marriott will cave to JBG's demands on the other property just to get them to drop the suit so that they can proceed to build the Convention Center hotel.

Which is another irony, given that the City Council is making a point of how the Executive Branch has been breaking the law on contracting, which came to their attention first over special contracting to friends of the Mayor, which by the way, columnists at the Examiner, Harry Jaffe and Jonetta Rose Barras, don't seem to think is a big deal.

See "Gray wants to give Fenty administration more time on contracts," "Firm got millions after D.C. Council ended contract," and "D.C. Council ends deal with Fenty's friend's firm" from the Post for more on the issue. Look up the old Examiner columns on their website yourself.

For past writings on the Florida Market issue, see:

- If the developer doesn't care, then what happens?
- Gateway Market Testimony
- Civic engagement, zoning matters, and democracy

- This entry reprints a positive press release about the Sang Oh Choi project from the local Councilmember, Ward 5 to announce major investment in Florida Market urban renewal project
- The Florida Market bill before City Council
- AARGH on the Florida Market area

for some of the past entries on the Florida Market debacle.