Author Archives: ljjanezich

Rattlesnake Chili and Bison Ribs on H Street – Update on Kitty’s Saloon

by Larry Janezich

Last night, David Conn, executive chef and managing partner of Kitty’s Saloon, opening soon at 1208 H Street, NE, (formerly Souk) appeared before ANC6a’s ABC Committee to support renewal of the restaurant liquor license associated with the building.  He told the committee that the restaurant would have a western theme and would serve tap beer, premium whiskies, and bourbon.  The restaurant will extend the novelty venue tradition begun by Joe Englert and his partners.  The menu will feature small plates and entrees focusing on Western and Southern food, including rattlesnake chili (really), bison ribs, and roasted squab – as well as some “fun” dishes like fried baloney sliders.   

The restaurant will open “late summer – soon” according to Conn, evenings only at first, but for brunch as well, shortly. 

The operators are in talks with the owner of the building to expand to the building’s second floor and its rear deck, though the plan was in its very early stages and timing is uncertain.  The restaurant has no plans to ask for an entertainment endorsement for the license. 

The Week Ahead…..ANC6a Committees Take Center Stage

by Larry Janezich

Monday, August 18

ANC6a Transportation  & Public Space Committee meets at 7:00pm at Maury Elementary, 1250 Constitution Ave NE (enter from 13th St. NE). 

Among items on the agenda:

Public space application for sidewalk café at 1380 H Street NE, Oh Zone Lounge, formerly the Ohio Restaurant;

Request for information from Department of Public Works (DPW) concerning

process for requesting public litter cans at and around the intersection of 12th and K Streets, NE;

Request for District Department of Transportation (DDOT) to conduct assessment

of traffic conditions and drainage/cleanliness related to the alley between the 1200 block of Wiley Street, NE, and H Street, NE, and the alley just north of the 800 block of H Street NE;

Request for DPW to address concerns about vacant city owned property at 802 10th Street, NE,  including frequent illegal parking;

ANC6a’s Community Outreach Committee meeting, normally would meet August 18, but has been rescheduled for 7:00pm, Monday, August 25 at Maury Elementary School. 

Tuesday, August 19

ABC6a Alcohol Beverage Licensing Committee meets at 7:00pm, Sherwood Recreation Center, 10th and G Streets, NE;

Among items on the agenda: 

Restaurant liquor license renewal for Kitty’s Saloon (formerly Souk) at 1208 H Street, NE;

Restaurant liquor license renewal for Ocopa (formerly Chicken Tortilla) at 1324 H Street NE;

Presentation by new owner of 1123 H Street NE (formerly XII Restaurant and Lounge) regarding license transfer and future plans.

Wednesday, August 20

Economic Development and Zoning Committee meets at 7:00pm, in Sherwood Recreation Center, Corner of 10th and G Streets, NE.

Among items on the agenda:

Special exception to permit a two story garage addition with second floor apartment at 1229 F Street, NE;

Special exception to permit a one story rear porch addition at 1419 F Street, NE;

Consideration of possible violation of zoning code in connection with new construction of a three-story single-family dwelling in R-4 district on 825 square-foot lot;

Discussion of seeking designation as a blighted and or vacant tax status for 1000 C Street, NE. 

Thursday, August 21

Police Service Area (PSA) 108 public meeting, 6:30pm, First Baptist Church, 527 Kentucky Ave SE.

 

The Hine Project: Part 1 – How It Happened

DMPED, Stanton/Eastbanc, Local Politics, and Tommy Wells

Editorial by Larry Janezich

The Hine Project has been a case study of how the city moves its development agenda forward,

attempting to provide tax revenues and jobs by granting developers favorable terms while paying lip service to the citizens and residents adversely affected by development.  In some ways, it is a study in the failure of the political process.

From the beginning the city-developer public-private partnership on the Hine process has been characterized by manipulation, dissembling, conflict of interest, and a cozy relationship between city officials and Stanton East Banc (SEB).

Specifically:

• The city’s Request for Proposals (RFP) from developers, including the priorities it articulated, served as poor guide to deduce what Deputy Mayor’s office for Economic Development (DMPED) ultimately wanted from the project;
• Stanton Development launched a letter-to-DMPED writing campaign among family, friends, and clients to manufacture the appearance of a community consensus supporting the Stanton East Banc proposal, and DMPED counted this effort as legitimate support, going so far as to cite it as one reason for SEB’s selection (see here: http://bit.ly/1AjyLBE);
• Early in the selection process – at various points – the Stanton East Banc proposal included as prospective components of the project: the Shakespeare Theater, a boutique hotel, a charter school and a large non-profit – all of which ultimately fell away;
• CHRS, disposed to favor the familiar and local SEB (Stanton Development’s Kitty Kaupp is a substantial financial supporter of CHRS), gave SEB its perfunctory endorsement based upon the recommendation of five CHRS board members selected by and including former CHRS President Dick Wolf. The group held one meeting, in private, and the first and primary justification of their recommendation in favor of SEB as stated in the subcommittee report was:  “We all know Amy Weinstein will listen to the community and will have a superb design.  We should be most comfortable with this team and be able to negotiate with it in the future.”  The CHRS Board accepted the recommendation and agreed to it without debate or discussion, and that recommendation was then represented to and construed by the city as speaking for hundreds of CHRS members [editor’s note: I resigned as editor of the CHRS newsletter over this failure in process];
• East Banc brought in former City Council Committee staffer Joe Sternlieb and former member of the Board of Directors of the District of Columbia’s Housing Finance Agency Buwa Binitie (who was made a partner in the Hine project) to steer the project through the bureaucratic process and Low Income Housing Tax Credit process respectively, illustrating the “revolving door” which characterizes and undermines so much in city governance;
• Overlapping membership in local civic and business organizations, including CHRS, EMCAC, Capitol Hill BID, BRMS, and The Capitol Hill Foundation provided a strong coalition of special interest groups which supported SEB, giving the appearance of broad neighborhood endorsement without corresponding substantial grassroots support;
• EMCAC justified their support of the Stanton East Banc proposal by citing the promise of parking for Eastern Market and space for the flea market (both of which ended up much less than originally proposed);
• DMPED endorsed Stanton East Banc as the developer;
• Subsequent negotiations between DMPED and SEB led to a Council Term Sheet and Land Disposition and Development Agreement (LDDA) that favored the developer, providing for a ground lease at bargain basement prices and community benefits paid for by the taxpayer rather than the developer;
• DMPED subsequently arranged a transfer of part of the Hine property as an outright sale – also at bargain basement prices. This north parcel, it was suggested, would be for the construction of townhouses which would allow Stanton East Banc to sell the townhouses outright, an advantage to them in seeking financing;
• Councilmember Tommy Wells responded to requests for his intervention prior to City Council disposition of the Hine site that the place to challenge height and mass issues would be during the Zoning Commission’ Public Unit Development (PUD) process;
• The Greater Greater Washington crowd, waving the flags of “new urbanism” and promoting a “livable, walkable city” with greater density near transportation hubs fell into line, and began their hectoring campaign in support of Councilmember Tommy Wells and SEB, promoting greater density near Metro as desirable without acknowledging that Capitol Hill is, as Ken Jarboe wrote in a comment on a February 29, 2012, CHC post, that the Comprehensive Plan notes the “Hill is already one of the densest areas in the District of Columbia.”
• The City Council rushed approval of the deal through in the final days before the August 2010 recess – with then-Chair Kwame Brown saying that the CHRS endorsement was a deciding factor for him, citing the endorsement of the full 1,000 strong CHRS membership;
• HPRB – openly deferential to Stanton East Banc architect Amy Weinstein (a former HPRB Board Member) – approved the massing, height and design dismissing the objections raised by ANC6b in public hearings and despite serious reservations expressed by a new HPRB board member – respected architect Graham Davidson –  who called for taking a floor off the project and a redesign of the Pennsylvania Avenue façade;
• When prodded again by residents to intervene on behalf of the community in the case of Hine, at a meeting of over 200 residents and one of the largest community meetings in recent memory on Capitol Hill, Councilmember Wells turned over responsibility for negotiating details of the Public Unit Development (PUD) on height, mass, benefits and amenities on the project to ANC6b, saying he would endorse whatever they approved;
• Stanton Development again launched a letter writing campaign on behalf of the project when the plans went before the Zoning Commission in 2012, with most of the letters of support for the project coming from those who had some business relationship with the developer (see here http://bit.ly/1nW4SyP);
• The Office of Planning assured interested civic organizations during meetings to explain the PUD process that hiring counsel was unnecessary to successfully press their interests;
• On June 13, 2012, a divided ANC6b endorsed the Hine Project’s PUD agreement by a vote of 6-4, with Commissioners Brian Pate and Ivan Frishberg – the two ANC6b Commissioners who represented the Commission before city agencies and who negotiated the final design and public benefits package on behalf of ANC6b – supporting the project;
• CHRS gave up the fight to improve the project early on. Despite having spent $20,000 to fight the addition of a comparatively trivial third story to the Heritage Foundation building at 227 Pennsylvania Avenue, SE – (spearheaded by then CHRS Historic Preservation Committee Chair Nancy Metzger, now a board member of HPRB) – CHRS didn’t spend a dime to improve the design of the Hine project or even ask for party status before the Zoning Commission despite registering strong reservations and insisting on design changes for the project when testifying before the Zoning Commission;
• The Zoning Commission approved the Hine PUD process after a public review which was remarkable to this observer for revealing commissioners who were ill prepared, ill informed, and ready to defer to the judgment of other city agencies;
• Super-lobbyist, Hine partner, and Jeffrey Thompson-associate David Wilmot pressured the Mayor’s office to close quickly with SEB on the Hine project, despite reservations from the Mayor’s office regarding departure from routine procedure;
• The Hine deal was closed and the land transferred to SEB on July 12, 2013, after DMPED agreed to separate the land closing from the financial closing, and delay the latter until financing could be obtained;
• On June 28, 2013, the Hine Coalition, a group of Capitol Hill residents appealed the Zoning Commission’s approval of SEB’s plan for the Hine project to the DC Court of Appeals, on the basis of incompatible scale and density and as being inconsistent with the DC Comprehensive Plan – which states that mixed use buildings in areas such as the Hine site “generally do not exceed five stories in height”. The group’s attorney, Oliver Hall, attempted to require DMPED to fully comply with the Freedom of Information Act regarding documents related to the Hine project.  Such documents as were finally made available by DMPED at the order of the Mayor’s office revealed the extent to which political pressure was brought to bear on DMPED to expedite the closing process to avoid the necessity of the City Council extending (again) the closing deadline;
• On August 14, 2014, the DC Court of Appeals affirmed the decision of the Zoning Commission. The decision seems to legitimize the Zoning Commission’s decision to defer to other city agencies, minimize careless inconsistencies in the Zoning Commission’s report, and reaffirm the court’s practice of not considering questions which have been raised for the first time in the appeal.

One question which the decision seems to open up is whether developer can convert the affordable housing in the project’s North Building to market value housing after 40 years – assuming the project lasts that long.  The developer’s plans anticipate exemption from some of the restrictions in Inclusionary Zoning (affordable housing) Program, but the court decision seems to indicate that the exemption is contingent on the affordable housing being maintained for as long as the project exists.  Finally, the decision endorses the ZC’s contention that the ZC has no responsibility to rule on whether the project is a good deal for the city.

City agencies define the city as “city government” – which in the District appears to mean the elected officials and the financial interests that make it possible for them to get elected.  To the bureaucracy, the city does not mean the communities, neighborhoods, and residents of which the city is comprised.

​When astro-turfing replaces grassroots and when the voices of residents who invested here before it was fashionable are dismissed by city officials ​and lost in the chorus of ​those calling for greater density, more economic development, and greater opportunities for high end consumption, disequilibrium is the inevitable result.  And when progress is defined in these terms, it comes at the expense of community values, its integrity and connectedness, and the sense of place that too many of us have taken for granted.

Next:  Part 2 – The Hine Project: What We Lost – DC as A Developer’s City

Synopsis of the DC Court of Appeals Decision on Hine

by Larry Janezich

What follows is a point by point summary of the DC Court Appeals Decision on Hine.  In the very near future, Capitol Hill Corner will be posting a longer story on the Hine Development.

Petitioners claimed that Zoning Commission (ZC) did not address concerns or hear sufficient evidence to make a finding regarding the height and mass of the proposed development.

Decision:  The court finds no reason to disagree with Historic Preservation Board approval. The record is “replete with evidence upon which the Zoning Commission basedits conclusion,” contrary to the many objections in the record to the project’s size.

Petitioners claimed the Zoning Commission failed to find that the project was in compliance with the Inclusionary Zoning (IZ) Program, in particular the affordable housing components.

Decision:  Petitioners raised this issue for the first time on appeal.  The court did allow that the Zoning Commission should have made explicit finding about the percentage of gross floor area committed to affordable housing.  At the same time, the court found that petitioners failed to show that the Zoning Commission finding that the amount of affordable housing exceeds what the IZ program requires is not supported by substantial evidence.

Petitioners claimed the developers’ plan for the affordable housing in North Building to expire after 40 years fails to meet IZ requirements.

Decision:  The Zoning Commission did not conclusively state when the affordable housing expires, nor did they find that the project was exempt from the IZ Program.  The determination on expiration will be made when the development applies for a building permit and a certificate of occupancy. 

Petitioners claim segregation of affordable housing in the North Building contravenes the Comprehensive Plan.

Decision:  The developers propose an exemption from IZ but the petitioners depend on IZ Program requirements for this claim.

(DC permits exemption from IZ Program if: 1) Program provides same about of affordable housing as required under IZ; 2)  Affordable housing is reserved for as long as the project exists; 3)  Both obligations are stated as declarations in a covenant approved by the District and recorded in land records).

The Zoning Commission recommended improving design and materials of North Building and developer complied.  Zoning Commissioners were sympathetic to project because of the “crisis of affordability” in the city, and also sympathetic to project because of financing issues.  Developers claim financiers are unwilling to combine financing of Low Income Housing Tax Credits with conventional debt and equity.  After “careful consideration” the ZC approved the affordable housing component, and “[W]e will not disturb its decision.”

Petitioners raised two due process issues:

1)  ZC order relied on LDDA though the document is not in the record; 2)  ZC failure to examine LDDA prevented discovery that cost of many benefits and amenities are to be deducted from the ground rent of the land and thus, paid for by the taxpayers.

 Decision:  Petitioners failed to demand production of LDDA when the project was before the Zoning Commission; hence cost of benefits and amenities are being raised for the first time on appeal. Because the petitioners did not as the ZC to accept their interpretation of “development incentives,” the Court declines to address this issue for the first time on appeal.  (In another ZC case referred to by the Court, it noted the ZC specifically declined to second guess the calculations that led the District to conclude the development tradeoffs constituted what was a good deal.)

Conclusion:  “The Order of the Zoning Commission is hereby Affirmed.”

The court decision can be found here: 

http://www.dccourts.gov/internet/documents/13-AA-366.pdf

The Week Ahead….?

by Larry Janezich

No meetings scheduled.

Photos from the Week Past…..

 

Neighbors Allege Drug Dealing and Disorder at Eastern Market Metro Park

by Larry Janezich

Thursday night, a dozen residents of the neighborhood just north of the northeast portion of Metro Plaza Park (where the “guerilla playground” is located) turned out for a PSA 107 meeting to complain about alleged increased criminal drug activity in the park.  The diagonal walk across the park separates an ad hoc children’s playground from what neighbors allege is an ongoing drug market and continuing public nuisance.  The latter issue refers to non-criminal quality of life issues concerning overnight sleeping in the park, in nearby yards, on porches and in unlocked cars; trash and refuse accumulation, and harassment of women who walk through the park.

According to residents, the ordinary crowd of homeless people who use the park has recently witnessed the arrival of a “new element” in the park– that is, people who appear to be selling drugs and encouraging disorderly behavior.

Neighbors say that the advice given in previous PSA 107 meetings to deal with such problems – to “call 911” – has not helped, and that when the “911 priority list” enabled officers to respond, the response often resulted in no action with officers citing “lack of jurisdiction” (mistakenly believing US Park Service has responsibility), “DC has no anti-loitering law,” and “it’s not really illegal to sell synthetic marijuana.”

Lt. Eddie Fowler, MPD’s representative at the meeting, called the description of the activities “definitely unacceptable” and said he would call in the MPD vice unit and in addition, detail an officer on each shift to keep tabs on the park.

The neighbors also expressed concern about the larger problem which goes beyond the ability of MPD to solve.  For example, clearing the park of loiterers serves to drive them into the adjacent community, leaving unanswered the question of how to address this problem in a meaningful way.  Several neighbors expressed support for a community meeting involving various stakeholders:  the MPD, neighboring fast-food business whose refuse contributes trash, Community Connections, and other city services.  The coordination of such a meeting would seem to fall under the auspices of ANC 6B – particularly those commissioners whose Single Member Districts include or border the Plaza (in this case, Commissioners Frishberg, Pate and Oldenburg).

Fowler said that people are attracted to the area for many reasons, and if one of those reasons is lack of police presence, MPD would address that.  (By Friday morning, there was evidence of a greater police presence in and near the park.)

Carl Reeverts, 9^th street resident, noted the proposed $42 million redesign of the Metro Plaza Park currently in the final stages of design, and asserted that the success of fulfilling the promise of the space becoming a community square will depend on its safety, usability, and comfort – and that failure of any of these will keep the park from being used, saying ‘without  maintenance, spending $42 million will not be a good investment.”

Only one ANC6B Commissioner was present for the meeting – Kirsten Oldenburg whose SMD ANC6B04 borders the east and much of the south sides of the park.  Oldenburg left the meeting during the discussion and was not present for the part of the meeting where community action was discussed.

 

8^th Street District Doughnuts Offers Free Gourmet Donuts Fridays Throughout August

Soft Opening Begins Tomorrow, August 8

by Larry Janezich

District Donuts, the new gourmet doughnut shop at 749 8^th Street, SE, will hold the first of its Friday soft openings tomorrow, August 8.  CEO Greg Menna said that 500 doughnuts will be given to the first 500 patrons visiting the shop (one per customer) starting in the evening at 6:00pm.  The soft openings will continue every Friday through August until the hard opening on Monday, September 8.  The menu anticipates five or more flavors at $2 – $3 each.  The two flavors offered for free tomorrow:  Brown Butter Cinnamon and Dulce de Leche Vanilla Bean.  For more on these and other doughnuts, go here:  http://www.districtdoughnut.com/

Asked what makes DD’s donuts special, Menna said that the dough for every variety of donut is made from scratch – a unique creation of executive pastry chef, Christine Schaefer.  Schaefer learned baking at Le Cordon Bleu and ran a gourmet bakery in Buffalo, NY.  DD’s goal, he said, was to “make the flavor experience more powerful – unique.”  The doughnuts are the traditional shape, but slightly smaller in size than what we’re accustomed to – Menna says, “not an indulgence, a treat.”

Until now, District Doughnuts has been a catering business and this is the first of what Menna and his partners Schaefer and Juan Pablo Segura hope will be many.

The Week Ahead….And Election Update – Candidates Emerge for All Seats in Capitol Hill’s Four ANCs

by Larry Janezich

The Week Ahead….. (not so much)

Monday, August 4

ANC6B holds a community meeting, 7:00pm – 9:00pm, to discuss status and outcomes of the Office of Planning’s Barney Circle-Southeast Boulevard Planning Study, at Hill Center.

ANC Election Update

The deadline for filing a petition to run for ANC Commissioner is Wednesday, August 6.  To become a candidate, a nominating petition signed by 25 registered voters in a candidate’s Single Member District (SMD) must be filed with the DC Board of Elections by that date .  These nominating petitions will be posted in the Board’s office for a ten-day challenge period during which any registered District voter may challenge the validity of any petition by a written statement signed by the challenger and filed with the Board.  The statement must specify concisely the alleged defect(s) in the petition.  Petitions are declared invalid most frequently because residents who are ineligible to sign them are disqualified, which takes the number of signatures below the required 25.

Following is a list of the Single Member Districts in the four Ward Six ANCs which comprise Capitol Hill, the current commissioner for each SMD, and the potential candidates who have picked up nominating petitions as 5:53pm on August 1 (according to the DC Board of Elections) to get their names on the ballot in the general election in November.

ANC6A

ANC6A01 – (J. Omar Mahmud, incumbent)  Candidates:  Raphael V. Marshall, Andy Clark, J. Omar Mahmud.

ANC6A02 – (Gloria Nauden, retiring)  Candidates:  Phil Toomajian

ANC6A03 – (Chris Ward, incumbent)  Candidates:  Chris Ward

ANC6A04 – (Nick Alberti, incumbent)  Candidates:  Nick Alberti, Matt Levy, Joyce West

ANC6A05 – (Jay Williams, retiring)  Candidates:  Dan Allen, Patrick A. Malone, Hassan Christian

ANC6A06 – (Andrew Hysell, retiring)  Candidates:  Todd Sloves, Stephanie Zimny

ANC6A07 – (Sondra Phillips-Gilbert, incumbent)  Candidates:  Sondra Phillips-Gilbert

ANC6A08 – (Calvin Ward, incumbent)  Candidates:  Calvin Ward

A map of ANC6A’s SMDs can be found here:  http://www.anc6a.org/map.html

ANC6B

ANC6B01 – (Vacant, Dave Garrison resigned)  Candidates:  Jennifer E. Samolyk

ANC6B02 – (Ivan Frishberg, retiring)  Candidates:   Gerald Sroufe, Diane Hoskins

ANC6B03 – (Phil Peisch, retiring)  Candidates:  James M. Loots, Kelly Vielmo, Claudia Howell

ANC6B04 – (Kirsten Oldenburg, incumbent)  Candidates:  Kirsten Oldenburg

ANC6B05 – (Brian Pate, retiring)  Candidates:  Carl B. Reeverts, Steve Hagadorn, Ellen Opper-Weiner

ANC6B06 – (Nichole Opkins, retiring)  Candidates:  Nick Burger, Anthony Cassillo

ANC6B07 – (Sara Loveland, retiring)  Candidates:  Daniel Chao

ANC6B08 – (Chander Jayaraman, incumbent)  Candidates:  Chander Jayaraman

ANC6B09 – (Brian Flahaven, incumbent)  Candidates:  Brian Flahaven

ANC6B10 – (Francis Campbell, retiring)  Candidates:  Kathryn Denise Rucker Krepp, Peter Gould

A map of ANC6B’s SMDs can be found here:  http://www.anc6b.org/?page_id=20

ANC6C

ANC6C01 – (Daniele Schiffman, incumbent)  Candidates:  Daniele Schiffman

ANC6C02 – (Karen Wirt, incumbent)  Candidates:  Karen Wirt

ANC6C03 – (Scott Price, incumbent)  Candidates:  Scott Price

ANC6C04 – (Mark Eckenweiler, incumbent) Candidates:  Mark Eckenweiler

ANC6C05 – (Mark Kazmierczak, incumbent)  Candidates:  Mark Kazmierczak

ANC6C06 – (Tony Goodman, incumbent)  Candidates:  Tony Goodman

A map of ANC6C’s SMDs can be found here:  http://anc6c.org/map.html

ANC6D

ANC6D01 – (Sam Marrero, incumbent)  Candidates:  Marjorie Lightman

ANC6D02 – (Stacy Cloyd, incumbent)  Candidates:  Stacy Braverman Cloyd

ANC6D03 – (Rachel Carroll, incumbent)  Candidates:  Rachel Reilly Carroll

ANC6D04 – (Andy Litsky, incumbent)  Candidates:  Andy Litsky

ANC6D05 – (Roger Moffat, incumbent)  Candidates:  Roger Moffat

ANC6D06 – (Rhonda Hamilton, incumbent)  Candidates:  Rhonda Natalie Hamilton

ANC6D07 – (David Garber, retiring)  Candidates:  Josh Hart, Meredith Fascett

A map of ANC6D’s SMDs can be found here:  http://www.anc6d.org/map.html

Nomination petitions can be picked up here:

DC Board of Elections

441 4th Street, NW, Suite 250 North

Washington, DC 20001

Tel: (202) 727-2525 | TTY: (202) 639-8916 | Tollfree: 1-866-DC-VOTE

The DC Board of Election’s Candidate Guide to Ballot Access can be found here:  https://www.dcboee.org/home.asp

Eastern Market To Permit Political Petitioning Pending Implementation of New Policy

Issue Exposes Tension Between Petitioners and Vendors

by Larry Janezich

Wednesday night, Eastern Market manager Barry Margeson told the Eastern Market Community Advisory Committee (EMCAC), that a draft policy regarding the rules and regulations for “everybody who is on our space” was currently under review by ​city lawyers and the new policy takes effect, Eastern Market will permit political petitioning​.  It was unclear whether petitioners will be restricted to a certain area or areas under the Market’s control.

Until the draft policy is made public, it is also unclear what other changes will be made and how it will address the complaints of the sellers of the newspaper Street Sense,​ who in recent months have been banned from vending on 7th Street between Pennsylvania and North Carolina Avenues. SE.  One seller who was present Wednesday night, Conrad Cheek, Jr., complained he sold Street Sense near Eastern Market until he was “kicked off the corner.”  Cheek claims the restrictions have cost him one-third of his income, and vowed to appear on his old corner near the market this weekend; “I will be here selling my paper​,​”​ he told the EMCAC meeting, hinting that he has consulted a lawyer.​

Broadening the policy to permit – (at least) political petitioning – will not come without some grumbling by the Eastern Market street vendors who view the petitioners and other vendors as problematic because they interfere with access to their businesses.  Artist Joe Snyder who operates a stand on 7th Street on weekends said petitioning is a distraction for vendors.  Vendor Anita Jefferson said petitioners impede traffic and thus impede public safety.

The petitioning issue illustrates some of the multi-dimensional tensions that exist between Eastern Market and the community which are being addressed in a piecemeal fashion, speaking to the need for a new stronger market governing structure to better coordinate the resolution of problems as the Market moves forward in a more competitive environment which is characterized by a changing demographic.

The outside vendors contribute substantially to the financial stability of the market, but often fail to acknowledge the sacrifices the community makes in order to provide them with space to operate – e.g., the closing of 7th Street – and the parking difficulties nearby residents encounter on weekends as the market becomes more of a destination rather than a walk-to food outlet.  And although a more rigorous enforcement of the parking policy in the spaces between the market and the natatorium has made more parking available to shoppers on weekends, the inside merchants are not convinced that the closing of 7^th Street to accommodate street vendors has worked to their benefit.  ANC6B is currently working with DDOT to develop a parking policy to help protect weekend parking for residents close to Eastern Market.

ANC6B Commissioner Ivan Frishberg said that the petitioning issue went beyond leaving it up to lawyers who can find a way to defend anything, noting “this is our town square.”  He said “we don’t want anything promulgated without EMCAC and ANC(6B) review.”  Frischberg said he would like to see the draft policy at the next meeting (which won’t come until near the end of September).  Margeson agreed to refer the draft policy to the ANC.

The petitioning issue received city-wide attention owing to a recent news report by WRC/NBC TV reporter Tom Sherwood who witnessed the prevention of political petitioning on space controlled by Eastern Market.

Sherwood not only tweeted about it but called the Mayor’s Office, Council Member Tommy Wells’ office, and the Department of General Services.  He subsequently received assurances from DSG that they had no intention of banning political petitioning at the market.

You can see Sherwood’s report here: http://bit.ly/1pjFIMx  and CHC’s post on the issue here:  http://bit.ly/1oRvLEC

DC Auditor Finds Financial Mismanagement in DGS Operation of Eastern Market

Low Sales Volume Apparently Puts Inside Merchants In Bind – Raises Questions About Business Model Going Forward

by Larry Janezich

A required biennial audit of Eastern Market operations by the DC Auditor found substantial financial mismanagement and raised questions about the future of Eastern Market which will soon face competition from two area Whole Foods and a possible Rodman’s Discount Gourmet in the future Hine development.

The audit for the period October 1, 1010 to June 30, 2012, revealed that the double rents which South Hall Merchants are required to pay until they agree to new leases (the current leases expired in June and December of 2008) were not collected by the Department of General Services (DGS).  Since the expiration of the leases, the audit found, no South hall merchant has entered into a new lease agreement.  Merchants continue to operate under the double rent penalty, but DGS is not collecting double rents because, according to the report, DGS believes it unrealistic. Presumably, the actual amount owed the city by merchants is much higher, given the figures apply only to the audit period.  Negotiations to increase the rent and enter into new lease agreements have been unsuccessful.

The current South Hall Merchants, their monthly rent, and the amount which DGS has said is owed the city for the 21 months covered by the audit period between October 1, 1010 and June 30, 2012, is as follows:

1. Blue Iris Flowers                                                           $672.80           $14,128.50

2. Bowers Fancy Dairy Products                                $716.10           $15,038.10

3. Calomiris Fruits & Vegetables                                $1411.20         $29635.20

4. Canales Delicatessen                                                  $1310.40         $27,518.40

5. Canales Quality Meats                                               $724.50           $15,214.50

6. Capitol Hill Poultry & Park Produce                  $1413.30         $29,679.30

7. Eastern Market Grocery                                          $659.40           $13,847.40

8. Eastern Market Pottery                                           $806.00           $16,926.00

9. Fine Sweet Shop                                                          $1638.00         $34,398.00

10. Market Lunch                                                            $2883.30         $60,549.30

11. Market Poultry                                                          $850.50           $17,860.50

12. Southern Maryland Seafood                               $2306.40        $48,434.40

13. Union Meat                                                                  $2137.80         $44,893.80

14. National Capitol Bank ATM                                 $875.00           $18,375.00

The auditor, deferring to DGS’ judgment regarding the collectability of the outstanding rents, recommends only that merchants be assessed some $3,500 in unpaid late fees.  The audit also found a lack of complete records of events in North Hall during the audit period, as well as incomplete records for outside vending.

In a written response to the report, dated July 11, 2014, DGS Director Brian Hanlon addressed its recommendations, agreeing to execute “best efforts” to enter into new lease agreements after a market rent appraisal, but warned, “It is not clear that sales volume for Eastern Market South Hall merchants can support market rents.”  Hanlon also agreed to send collection letters to merchants by August 30 regarding payment of late fees – under threat of enforcement of collection of the double rent provision.  Hanlon noted regarding two other recommendations – a standard contract for rental of North Hall and monthly accounting provisions – that remedies have already been put into effect.

If Hanlon’s speculation about the low sales volume for South Hall merchants is borne out, it would not augur well for Eastern Market’s future unless​ radical changes​ are made to the composition of vendors and/or marketing​.

​Along those lines, in ​May of this year the South Hall merchants floated a plan to open 7th Street to parking on weekends to boost business, saying that current market policies were “strangling” them.  The move would have displaced 34 outside weekend vendors, ​who ​responded with opposition to the proposal. See CHC post from May 4, here:  http://bit.ly/RiV60I

Eastern Market Community Advisory Committee (EMCAC) board member Chuck Burger is spearheading an effort within EMCAC and the local business community to develop a marketing plan for Eastern Market.  It is unclear what the status of the plan is.

EMCAC met Wednesday night, but though the Auditor’s report had been released that day, the matter was not brought up, either in the Market Manager’s report, or by any member of the Committee.  EMCAC serves as an advisory board regarding market operations.  Legislation to restructure the Eastern Market governing board to provide decision making management authority proposed by Councilmember Tommy Wells last year, fell victim to opposition by Mayor Gray, and despite rumors to the contrary was not revived last January.