May 4, 2014 · 11:19 pm

The Week Ahead….Controversial DOT Pocket Park Issue Before Two ANC’s

7th Street Entrance to the Sunday Flea Market at Hine, 4:15pm.

7th Street Entrance to the Sunday Flea Market at Hine, 4:15pm.

The Week Ahead….Controversial DOT Pocket Park Issue Before Two ANC’s

by Larry Janezich

Monday, May 5

CHRS Historic Preservation Committee meets at 6:30pm, Kirby House, 420 10th Street, SE.

Tuesday, May 6

ANC6B Planning & Zoning Committee meets at 7:00p, St. Coletta’s School, 1901 Independence Avenue, SE.

Among items on the agenda:

Public Space application of sidewalk café for Curbside Café, 257 15th Street, SE.

Special Exception for fast food (pizza) at 1400 Pennsylvania Avenue, SE.

Historic Preservation application for construction at 531 8th Street, SE, Barracks Row.

Office of Planning proposal to relocate an existing emergency shelter on Reservation 13, from Building 9 the Building 27.

Discussion of options for ANC6B action regarding current DOT policy toward pocket parks.  The options include opposing a Historic Preservation application to erect a fence around a pocket park in ANC6A at 147 Tennessee Avenue, NE; a request for a greater role by ANC’s in landscaping applications for pocket parks; and a request that all pocket parks under DOT’s management be transferred to Department of Parks and Recreation.  For a fuller explanation of and the background on this issue, see the agenda for ANC6A on Thursday, below. 

Letter to Department of General Services regarding requests for offers to develop Eastern Branch Boys and Girls Club Building.

Nominations to the PUD oversight subcommittee on the construction of a major residential retail project at 1333 M Street, SE (see here: http://bit.ly/1pW7yOm)  In addition to ANC6B Commissioners, concerned residents or representatives of interested organizations are eligible to apply to serve on the Subcommittee.   Contact Commissioner Nichole Opkins:  202-631-2154 or nichole6b06@anc6b.org

Wednesday, May 7

ANC6B Transportation Committee meets at 7:00pm in Hill Center.

Among items on the Agenda:

Office of Planning neighborhood planning process for Barney Circle & Southeast Boulevard.

ANC6B request to change Performance Parking scheme north of Pennsylvania Avenue, SE.

ANC6A Testimony regarding CSX Virginia Avenue Tunnel expansion project.

Support for increase in sidewalk repair funding for fiscal years 2015-2017.

Wednesday, May 7

ANC 6C Planning, Zoning, and Environment Committee meets at 7:00pm at Capitol Hill Medical Center/Kaiser Permanente, 700 Second St. NE (2nd & G NE)

Items on the Agenda:

Two applications for additions to residences and a Zoning Commission case involving modification to the PUD for property at 2nd and K Streets, NE.

Thursday May 8

ANC6B ABC Committee will meet at 7:00pm in Hill Center.

Among items on the Agenda:

Request by Nooshi restaurant to establish a summer garden

Thursday, May 8

ANC6A meets at 7:00pm at Miner Elementary, 601 15th Street, NE.

Among items on the Agenda:

Letter to DDOT asking that DDOT consider installation of a traffic signal at Maryland and 10th Streets NE as an independent project.

Letter to DDOT recommending the location of the new Capital Bikeshare station, originally slated for 12th and H Streets, NE, at 10th Street and Maryland Avenue, NE.

Letter to DDOT asking them to correct their characterization of Reservation 266 as public parking.  (Reservation 266 is the pocket park at 147 Tennessee Avenue, NE, currently the subject of a Historic Preservation application before ANC6A to fence the space.  DDOT characterizes the pocket park as identical to the adjacent homeowner’s front yard.)

Letter to Councilwoman Mary Cheh:  1) recommending that all pocket parks and Reservations currently under DDOT jurisdiction be transferred to Department of Parks and Recreation,  2) asking that she urge DDOT to reconsider its position with regard to the designation of pocket parks as public parking, and to issue regulations providing for public notice and comment.

Letter to DC City Council requesting that they “craft legislation to declare that pocket parks and Federal Reservations are public space and may never be considered as public parking and that no changes to the landscaping or hardscaping by individuals, that would affect public use or access, may be approved without public input including consultation with the ANCs.  Further, a board similar to HPRB should be established to review such cases to ensure a fair and transparent process.”

Consideration of a motion that ANC6A oppose the Historic Preservation application for a fence around the pocket park at 147 Tennessee Avenue, NE. 

Letter to HPRB in support of Historic Preservation Application for the conversion of the Way of the Cross Church of Christ at 819 D Street NE and two adjoining row houses into a 30-unit residential development.

Letter to the Zoning Administrator advising that the building plans provided by the developer for the controversial construction of a residential condo building at 1511 A Street, NE, contain discrepancies related to the approval of the project.

Thursday May 8

CHRS Zoning Committee meets at 7:30pm at Kirby House, 420 10th Street, SE.

Saturday, May 10 – Sunday, May 11

CHRS House and Garden Tour.

Saturday, 4-7; Sunday 12-5.see:  www.chrs.org

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May 4, 2014 · 6:34 pm

Eastern Market Struggles With Its Identity

Proposal to Open 7th Street to Traffic Has Created Tension Between Merchants and Vendors

Proposal to Open 7th Street to Traffic Has Created Tension Between Merchants and Vendors

Mayor Fenty Closed 7th Street by Fiat After the Restored Market Opened in 2009

Mayor Fenty Closed 7th Street by Fiat After the Restored Market Opened in 2009

Inside Eastern Market, Sunday Afternoon, 3:30pm

Inside Eastern Market, Sunday Afternoon, 3:30pm

Few Drivers Heed the 1 Hour Time Limit For Parking in the 20 Spaces Behind the Market

Few Drivers Heed the 1 Hour Time Limit For Parking in the 20 Spaces Behind the Market

Eastern Market Struggles With Its Identity

Tension Between Inside Merchants/Outside Vendors on Market’s Direction

by Larry Janezich

The changing character of Capitol Hill is perhaps nowhere more evident than at Eastern Market.  Last Tuesday, the Eastern Market Community Advisory Committee (EMCAC) heard a proposal by inside Market food merchants Bill and Tom Glasgow and Mike Bowers to re-open 7th Street outside the Market to traffic on Saturdays, allowing customer parking and improving access to their businesses.  The proposal was the result of a meeting of inside merchants to provide input to a business plan being formulated by EMCAC to give future direction and cohesion to Eastern Market as it attempts to come to terms with changing demographics, new development, competition, and tourism.

Bill Glasgow of Union Meats is the inside merchants’ representative to EMCAC; Tom Glasgow runs Market Lunch; and Mike Bowers runs the cheese and dairy shop.  The​ir ​proposal to open 7th Street is a contentious​ one​ because it would eliminate the 34 vending positions for Eastern Market’s arts and crafts vendors who currently set up on 7th Street on weekends.  The proposal is opposed by the 7th street vendors and their newly elected representative to EMCAC, Erika Rubel.  Local artist and 7th Street vendor Joe Snyder says that “accessibility will continue to be a problem in an increasingly dense city and the Market will have to deal with it in a creative way” – but this should not include the reopening of 7th Street.

According to EMCAC chair​ Donna Scheeder, “EMCAC is in the long process of gathering input which will also include community meetings and other opportunities for the community to provide a wide range of input for what should be the priorities for Eastern Market. This is preliminary to the drafting of a business plan which is what EMCAC will react to. We are a ways off from that.”

Still, the proposal and its opponents reflect a tension between older, established businesses and newer up-starts.  Few if any of other retailers have enjoyed more market-protection than Eastern Market merchants, who are grandfathered in and pay low to moderate rent; on the other hand, few have done more to establish the neighborhood as a commercial destination.​  Their counterparts on the outside of the market depend on foot-traffic and square footage, whereas inside the Hall merchants would prefer to see parking available to customers looking to take perishables and other goods home.

​​Before the Eastern Market fire and the subsequent closing of 7th street by mayoral fiat under Adrian Fenty, the North Hall accommodated up to 40 arts and crafts vendors on weekends.  With the reopening of the Market, vendors were moved to 7th Street and the North Hall became a gathering space accessible to the community, not only on the weekends, but during the week, especially by children’s caregivers and their charges.

Bill Glasgow said the 13 inside merchants are getting “strangled” because customers can’t get access – they have to park blocks away and walk to the market to buy food.  He believes that the Market’s becoming a tourist destination has hurt the business of the food merchants inside.  According to Glasgow, “Saturdays are starting to look like Sundays – all tourism.  At what point do you want to strangle us out of business?”

The Market has about 20 spaces for customer parking in the alley behind the market with a one hour time limit, but according to Glasgow, the parking is “not controlled at all,” adding, “We’ve been complaining for five years.  It is absolutely essential to have parking.  How can you have a food market without access?”  Looking ahead to the proposed​ Hine development, he notes that although public parking will be provided, 7th Street between C and Pennsylvania Avenue will be closed on weekends to accommodate the flea markets.

The proposed ​Hine development may present new ​and more acute ​challenges for the Marke​t​.  Stanton Development has mentioned Rodman’s – the family-owned chain of discount grocery/drug stores, with a selection of international foods, wine and beer – as a possible tenant for the new Hine development.

Eastern Market is currently being managed by DC’s Department of General Services.  Market Manager Barry Margeson did not respond to a request for comment.  Margeson continues to solicit new outside vendors, but Glasgow sees advertising for new vendors as indicative of rapid vendor turnover because “they’re not making any money – there are too many.”  The Market’s policy he says, is “strangling the outside vendors and us.”

Some market-​goers think that parking may not be the inside merchant’s entire problem.  ​T​he more traditional Eastern Market may be suffering in comparison with the recently opened Union Market in Northeast.   In addition, the increased quality of some of the products under the farmer’s line on Saturday heads off many potential customers before they get inside​, especially when inside goods do not excel in quality or offer competitive price points​.  Likewise, the Market’s “Fresh Tuesdays” has brought locally produced higher quality produce and cheese to the farmer’s line outside the Market on Tuesday afternoons.  ANC Commissioner Brian Pate is interested in seeing the farmer’s line opened one night a week for Community-Supported Agriculture (CSA) providers.  CSA patrons pay upfront for shares of a local farmer’s harvest which are delivered to the customer.  Pate would like to see the farmer’s line opened up for these deliveries – which would to some degree increase the pressure on the inside vegetable merchants.

Since the demise of the Councilmember Tommy Well’s legislation providing for a new governing structure for Eastern Market, and with it, EMCAC’s proposal to consolidate under Eastern Market the control of the three separate outside vending operations (the Eastern Market vendors, Carol Wright’s Saturday and Michael Berman’s Sunday flea markets on the Hine parking lot) an element of mistrust has existed between Eastern Market’s outside vendors and EMCAC.  The Eastern market vendors see any consolidation as coming at their expense.  Vendor Joe Snyder characterizes the proposed consolidation as an “impractical merger of the three markets,” and raises the concern of the potential displacement of longtime Eastern Market outside vendors.

This is a critical time for the future of the Market.  It would seem that a good first step toward a partial remedy would be to enforce limited time parking in the alley behind Eastern Market. EMCAC and ANC6B – in their advisory capacities – may not be the vehicles for problem solving.  Given the lame duck status of Ward 6 Councilmember Wells and Mayor Gray, it is uncertain how much leadership they will or can provide – but in any event, the issues seem to require the attention of the executive branch rather than the city council.

 

 

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April 27, 2014 · 9:44 pm

The Week Ahead….Boy’s & Girls Club Building, CSX, Literary Hill Book Fest (Sunday)

Street Music, Saturday Afternoon, Eastern Market Metro

Street Music, Saturday Afternoon, Eastern Market Metro

Progress at the future home of Barracks Row's Capital Teas, 731 8th Street, SE

Progress at the future home of Barracks Row’s Capital Teas, 731 8th Street, SE

The Week Ahead….Boy’s & Girls Club Building, CSX, Literary Hill Book Fest (Sunday)

by Larry Janezich

Tuesday, April 29

ANC6B Executive Committee meets at 6:30pm in Hill Center to set the agenda for the ANC6B Commission meeting on Tuesday, April 13

Tuesday, April 29

Eastern Market Community Advisory Committee meets at 7:00pm in North Hall, Eastern Market

Wednesday, April 30

ANC 6B’s Hill East Task Force holds a second community meeting from 6:30 pm – 8:00 pm at Payne Elementary School (1445 C Street SE) to discuss a planned Request for Offers on the Eastern Branch Boys & Girls Club Building (261 17th Street SE).

Wednesday, April 30

The DC Council Committee of the Whole will hold a public hearing on CSX’s proposed expansion of the Virginia Avenue Tunnel, 9:30pm, Room 412, Wilson Building, 1350 Pennsylvania Avenue, NW.  Particular concerns include CSX’s ability to transport unlimited amounts of highly flammable Bakken crude oil through the construction site in an open trench feet from homes, parks, and a seniors’ center and less than a mile from the US Capitol Building for 3-6 years should the project receive approval. Please visit http://www.dcsaferail.org for more information about the community’s concerns.

Thursday, May 1

PSA 107 meets at 7:00pm, Southeast Library, 403 7th Street SE, Basement meeting room, with Lt. Eddie Fowler

Saturday, May 3

The Fridge hosts an opening Reception for new works from favorite local artist Ben Tolman, 7:00pm – 11:00pm.  516 8th Street, SE, Rear alley.

Sunday, May 4

Literary Hill Book Fest, 11:00am to 3:00pm. Eastern Market North Hall.  Info: http://www.literaryhillbookfest.org/

 

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April 27, 2014 · 11:43 am

On the Eve of Potbelly’s Arrival on Barracks Row,​ Is Capitol Hill Losing It’s Character?

 

Some residents fear that homogeneity will accompany Potbelly’s arrival on Barracks Row.  The restaurant is scheduled to move into the space formerly occupied by Tandoor Grill.  Plans for the Indian restaurant to re-open on the newly constructed second floor have been shelved in favor of office space.

Some residents fear that homogeneity will accompany Potbelly’s arrival on Barracks Row.  The restaurant is scheduled to move into the space formerly occupied by Tandoor Grill.  Plans for the Indian restaurant to re-open on the newly constructed second floor have been shelved in favor of office space.

Residents want more retail like Danna Oweida’s recently opened Pinktini Fashion Boutique, 705 North Carolina Avenue, in the former home of The Village Gallery, adjacent to Port City Java.

Residents want more retail like Danna Oweida’s recently opened Pinktini Fashion Boutique, 705 North Carolina Avenue, in the former home of The Village Gallery, adjacent to Port City Java.

Inside Pinktini Fashion Boutique

Inside Pinktini Fashion Boutique

…and more like the deceptively named “Homebody” at 715 8th Street, SE, one of the coolest retail outlets on Barrack’s Row. Homebody, co-owned by Henriette Fourcade and Erin Mara is in its ninth year on 8th Street.

…and more like the deceptively named “Homebody” at 715 8th Street, SE, one of the coolest retail outlets on Barrack’s Row. Homebody, co-owned by Henriette Fourcade and Erin Mara is in its ninth year on 8th Street.

Mara interacts with customers outside the store on Saturday.

Mara interacts with customers outside the store on Saturday.

On the Eve of Potbelly’s Arrival on Barracks Row,​ Is Capitol Hill Losing It’s Character?

by Larry Janezich

On April 8, a City Paper reporter said of the closing of Remington’s: ​ “As reported by PoPville, the building, located at 639 Pennsylvania Ave. SE, was sold a year ago and will be renovated.  If a Potbelly moves in, I’m moving out.”

Well, it’s a good bet that in the coming months Potbelly will move into the space now occupied by Tandoor Grille, and “& Pizza” will replace OXXO Cleaner’s on the same block.  A series of recent changes in Capitol Hill business fixtures point to the state of flux in the neighborhood’s​ commercial corridors.  The continuing trend toward food and drink venues – including fast food – worries residents.

Gone:  The old Hawk ‘n’ Dove, the 18th Amendment, Li’​l Pub, Remington’s, Fusion Grill, Hello Cupcake, Monkey’s Uncle,  Capitol Hill Fitness, the Dollar Store, China Wall.

On the way out:  Tandoor Grill, OXXO, Capitol Hill Sporting Goods, Kraze Burgers.

On the way in:  Potbelly, &Pizza, Capitol Teas, District Doughnuts, Sprint. (The owners of the former Remington’s are reportedly looking for a way to open a food venue in the half of the building not occupied by Sprint.)

Recently arrived:  Pinktini Fashion Boutique, Capitol Frames, Pure Barre. Barrel, Sona, Rose’s Luxury, Chiptole, District Taco, Medium Rare, Kimchii Cafe.

Status uncertain:  Nine restaurants formerly owned by Xavier Cervera.  (A recent rumor that Mr. Henry’s was going on the block was knocked down by owner Alvin Ross, who told CHC “Larry Quillian will never sell the building and I’m here ‘til I die.”)

The list above reflects changes in community demographics,​ ​as ​family​-​oriented businesses replace the edgier – and to some, more interesting – food and drink venues.  As the edgier places turn over,​ landlords look to increase revenues by renting to food and drink providers.  City agencies seem disposed to businesses which provide the most tax revenue.  Rodney Smith of Capitol Hill Sporting Goods, who has until January before his lease is up, says the building’s owner has been approached by a sushi bar operator.

One factor that contributes to high rent (and the bias in favor of chains that can afford them) is the major transportation hub at Eastern Market Metro.  A high volume of foot traffic provides fertile ground for fast food outlets.  Rents in the 400 block of 8th are reported to be $80 – $100 per square foot compared with $40 – $50 in the 700 block of 8th Street.

Residents and Barracks Row Main Street would like to see the street become home to more retail.  Five of the more successful Capitol Hill retail outlets are Homebody, Labyrinth Games and Puzzles, Hill’s Kitchen, Metro Mutts, and Biker Barre.  It’s noteworthy that owners of all five businesses live on Capitol Hill.  Erin Mara, co-owner of Homebody,​ says that it helps to have a good landlord and says “sometimes, we don’t pay ourselves.”  The Labyrinth Games & Puzzles and Howl to the Chief were recently listed as two of the 24 coolest small businesses in DC by Business Insider.  http://read.bi/1ntYv7G   Owner Kathleen Donahue of Labyrinth points to customer service and making your store a destination as the keys to retail success on Capitol Hill.   Leah Daniels of Hill’s Kitchen says that engaging the community beyond the store by participating in community events, embracing the “unbelievable amount of work,” and framing your selection around customer interests and listening to their feedback is key to her store’s success.

With the current legal trouble of Kraze Burger and Cervera​’s former empire, the recent anonymous comment on a recent posting on CHC: “the monoculture of food establishments on 8th is taking a beating. Maybe 8th St. needs some evolutionary diversity to survive as a commercial corridor,​” ​seems​ all the more relevant.​

So too do policies favoring restaurants over retail – like those which allow restaurants to pay far below minimum wage and allow tips to compensate (and exceed) the difference.  Visitors from Europe and Asia – including South Korea – must be surprised at the expectation of tips in American restaurants.  It’s worth remembering that customers subsidize artificially low labor costs for restaurants and bars, which depend upon greater numbers of workers to function, but which can also rely on a high mark-up for alcohol to produce a higher net profit.

And then there is the question of quality, and local versus chain.  Some of the people who would pass by a Potbelly’s will try an affordable yet more interesting spot like H Street’s Toki Underground, Chupacabra, or Taste of Jamaica.  Yet it is hard to design a policy tool that will facilitate one type of business over another.  Likewise, the success of the locally owned Biker Barre exercise and fitness business on 7th Street probably factored in to the Pure Barre fitness chain’s decision to open an outlet over Metro Mutts on Barracks Row.  It is difficult to see any threat to Biker Barre’s popularity as a result, especially since the fitness studio keeps its prices competitive.

In light of the city’s hunger for revenue at the expense of integrity of the community, it’s up to residents to hold ANC6B and city agencies accountable to preserve the commercial diversity and unique character of our neighborhood.  And in the end, it will be up to the neighbors to vote with their credit cards – in either direction.

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April 25, 2014 · 12:25 am

Xavier Cervera Undermined Restaurants in Take-Over Bid Say New Owners’ Lawyers

Xavier Cervera Undermined Restaurants in Take-Over Bid Say New Owners’ Lawyers

Update:  Full Text of Cervera’s Statement in Response to the Claim

by Larry Janezich

According to a report by Katy Stech of the Wall Street Journal Bankruptcy Blog on Thursday,  lawyers for the current owners of the Hawk ‘n’ Dove and seven other restaurants recently owned by Xavier Cervera claim that Cervera, in his role of consultant, undermined the profitability of several of the restaurants so the new owners would default on monthly payments thereby returning ownership of the restaurants to Cervera and his partners.  The new owners filed for bankruptcy on March 28, 2014, forcing the issue of Cervera’s accountability into the courts.  Capitol Hill Corner reported Cervera’s reaction to the bankruptcy filing here:  http://bit.ly/1dC2dLY

The lawyers did not say how the alleged deceit was effected, but according to court documents, the new owners fear the funds were diverted for other purposes.

Cervera and his Florida-based partners sold their nine restaurants to a Boston investment firm in December of 2012.  Cervera was brought in as consultant last August after revenues at the chain’s flagship restaurant – Hawk ‘n’ Dove – fell off sharply under the manager for the new owners, Richard Cervera (Xavier’s brother).  Richard Cervera was removed as manager of the eight restaurants and Xavier Cervera was reported to have resumed control of the day to day operations of the restaurants on behalf of the new owners.  (The ninth restaurant, Willie’s Brew and Que near National’s Ball Park, which was part of the deal, is still under construction.)  Richard Cervera’s tenure as manager was marked by an effort to take the Hawk ‘n’ Dove to a new upscale level and a management style which reportedly alienated long time employees.

Update:  In response to the report, Xavier Cervera authorized the  release of the following statement:  “Xavier Cervera had no ownership, management, or financial control over any of the Debtor’s operations at any time following the sale.  Any and all financial decisions and disbursements were those of the buyer, and Mr. Cervera never even had access to any of the buyer’s bank accounts or cash funds.

His only role was pursuant to a consulting agreement with the new owner, where he was called upon from time to time to express his opinions and assist in specific tasks that the new owner assigned to him

One of those requests was to assist and advise  the new owner in attempting to reverse a steady decline in sales and loss of key personnel that had occurred while the restaurants were under the control of Richard Cervera prior to Richard Cervera’s termination by the buyer last fall.  Sales at the venues were increasing steadily after Richard Cervera’s departure and prior to the bankruptcy.

All decisions as to management and financial control — and all aspects of the buyer’s finances and disbursements — were solely those of the buyer and any attempts to blame Mr. Cervera for the actions or inactions of the buyer’s management that led to the bankruptcy are without merit.

This includes any payments made by the new owners with respect to the construction of their new restaurant – Willie’s – which was almost ready to open prior to the filing.  In particular, Mr. Cervera has no “contractual obligation” to fund construction of Willie’s, as the new owners allege.

The purchasers have also asserted in the bankruptcy that Mr. Cervera kept control of a couple of items following the sale that they now claim should belong to the Company and not to him personally  The ownership of these few items is very much at issue and will likely be determined at some point as part of a court proceeding.”

Part of the purchase deal with Xavier Cervera was that he would not open a restaurant on Capitol Hill for ten years.  But Xavier Cervera is planning a new gastropub in Shaw’s Blagden Alley close to the trendy restaurant, Rogue 24.

For the entire WSJ post, see here: http://on.wsj.com/1pvy85W

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April 24, 2014 · 1:17 am

Developer Habte Sequar To Build 49 Unit Condo Building Near Atlas District

North Facade of Proposed 49 Unit Condo Building at 1215 K Street, NE.

North Facade of Proposed 49 Unit Condo Building at 1215 K Street, NE.

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Developer Habte Sequar To Build 49 Unit Condo Building Near Atlas District

by Larry Janezich

Last night, Washington developer Habte Sequar of Pierce Investments told ANC6A’s Economic Development Committee of his plans to build a 49 unit, five floor residential building at 1215 K Street, NE, in the space now occupied by Jimmy’s Tire shop.  The site lies just outside of the Atlas District, three blocks north of H Street, and two blocks east of Gallaudet, at the intersection of Florida Avenue, K Street, and 12th Street, NE.

When questioned about how the units will be marketed, Sequar said, “they will definitely be condos.”  The 50 foot matter of right building will provide 30 underground parking spaces.  The plans call for 16 two-bedroom units and 33 one bedroom units, ranging from 600 square feet to 950 square feet.  Inclusionary zoning requirements will provide five or six affordable housing units, maintaining the 2-1 ratio regarding unit size.  Sequar expects to break ground in 30 days  and complete the project 15 months later.

Sequar is the developer behind The Cardozo, a 28-unit apartment building at 11th and V Streets, NW; The Aston, in Logan Circle; The Renaissance at Logan; and Josephine Condos at 440 Rhode Island Ave., NW.

 

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April 21, 2014 · 8:50 pm

Fraud Allegations Behind Closing of Barracks Row Kraze Burger

Kraze Burger Barracks Row Closed Mid-March, Five Months After Opening

Kraze Burger Barracks Row Closed Mid-March, Five Months After Opening

Fraud Allegations Behind Closing of Barracks Row Kraze Burger

by Larry Janezich

Two investors have filed suit against several individuals allegedly involved in the opening of Kraze Burger Barracks Row, naming Virginia attorney Richard MacDowell and his associates as key actors.  MacDowell, reported recently to be the American CEO of Kraze Burger, a South Korean restaurant franchise, is listed as the agent for Kraze Burger Inc., said to be the operator of Kraze Burger on Barracks Row.  The suit filed in DC Superior Court on December 23, 2013, alleges that MacDowell, a partner in MacDowell & Associates, as well as his employees and/or partners in several businesses the documents say are owned by MacDowell, improperly converted funds which the plaintiffs – Great Falls, Virginia, couple Joo Won Kim and T.W. Kim – invested as start-up money for the Barracks Row Kraze Burger.

In related news, the Kraze Burger franchise chain’s first DC-area outlet in Bethesda filed for bankruptcy in late December, listing liabilities between $100,001 and $500,000.  Creditors included restaurant suppliers as well as the county tax department.

According to documents filed related to the Barracks Row lawsuit, MacDowell, in October of 2012, offered the Kims the opportunity to enter into a partnership to open a Kraze Burger franchise at 415 8th Street, SE, Barracks Row.  The documents allege that MacDowell proposed that the Kims would be 70% partners in a Kraze Burger to be set up by MacDowell, who would be the 30% partner, with profits and costs allocated accordingly.  The suit charges that MacDowell “induced” the Kims into allowing him to act as the sole partner responsible to hold and manage disbursement of investment capital as well as serving as counsel for the partnership.

The court documents state that MacDowell claimed startup capital would be $620,948.92 – a figure the Kims now claim MacDowell knew to be “inflated and inaccurate.”  The Kims say they deposited $430,000 in MacDowell and Associates’ escrow account and that MacDowell told them that a “significant portion” of the startup funds would be used to procure a lease with Street Sense, the building’s owner.  The Kims claim that MacDowell subsequently “contracted” with a construction company actually owned by MacDowell to do the build out work to open the franchise.

The documents also claim:

  • The construction company presented false documents which inflated the cost of opening the franchise and that MacDowell only spent funds deposited by Kim to open the franchise without investing his 30% of investment capital.
  • MacDowell never contributed any money whatsoever to the startup costs.
  • After buildout was complete, the Kims were made aware of multiple issues with the franchise resulting from poor management, including delinquent bills.
  • MacDowell ignored or denied numerous requests for accounting of expenditures and of funds being held and the Kims were “left no choice” but to conclude that funds were improperly taken and that MacDowell “intentionally misappropriated” funds and that MacDowell had “acted with malice.”

The documents do not address whether MacDowell put a price on his legal representation or on any activities he engaged in to further the project, nor whether MacDowell agreed to put up any funds at all as a portion of the $620,948.92 estimate for opening the restaurant.

The suit lists ten counts alleging improper “conversion of funds deposited [by the investors] for the use and purposes of… Kraze Burger and/or MacDowell outside the partnership” by ten individuals and an eleventh count alleging conspiracy to commit improper conversion naming all ten defendants.

When contacted by Capitol Hill Corner, MacDowell’s attorney referred questions to MacDowell, who was unavailable for comment.  There was no immediate response from Kraze Burger’s US headquarters.   The attorney for the Kims said that because of the pending litigation, he could not comment.

The building that houses Kraze Burger was once a Dollar Store and Chinese carryout that was purchased and remodeled by DC real estate and development company, Street Sense.  Although ANC 6B seemed anxious to limit the number of carryout restaurants on Barracks Row, commissioners raised no objections to Kraze Burger’s proposed arrival.  While open, the restaurant appeared to be doing little sit down business.

For the time being, it is not clear what the future holds for the Kraze Burger on Barracks Row.  The effect of legal troubles on the other four area Kraze Burgers and a proposed NoMa outlet is uncertain.  CHC reported on Barracks Row Kraze Burger’s opening October 17, 2014 here:  http://bit.ly/1nkoGQR

 

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April 20, 2014 · 9:28 pm

The Week Ahead…..We Should All Be Watching the Wizards

The Week Ahead…..

by Larry Janezich

Monday, April 21

ANC 6A Transportation & Public Space Committee meets at 7:00pm, Maury Elementary School (1250 Constitution Avenue, NE) PLEASE NOTE LOCATION CHANGE:  Church of the Lord Jesus Christ of the Apostolic Faith Annex (1230 C Street NE)  

Among items on the agenda:

Consideration of safety improvements at 10th Street NE and Maryland Avenue NE while Florida Avenue NE transportation project is pending.

Consideration of new Capital Bikeshare station location originally planned for 12th Street NE and H Street NE in the proximity of the streetcar electrical substation.

Review of fence application before the Historic Preservation Office concerning lot adjacent to 147 Tennessee Avenue NE (at the intersection of 13th Street NE and Tennessee Avenue NE)

Monday, April 21

ANC 6A Community Outreach Committee meets at 7:00pm at Maury Elementary School,

1250 Constitution Ave NE (enter from 13th St.)

Review of grant requests for recess/sports equipment for Miner Elementary School (pending receipt of application) and for picnic tables for outdoor classroom for Eliot Hine Middle School.

Wednesday, April 23

ANC6B Outreach & Constituent Services (O&CS) Task Force meets at 7:00pm, in Hill Center.

Wednesday, April 23

ANC6A Economic Development & Zoning Committee meets at 7:00pm in Sherwood Recreation Center.

Among items on the agenda:

819 D Street, NE (HPA 14-180) – Applicant seeks Historic Preservation Board approval for redesigned plans for renovation of existing church and two adjoining rowhouses into proposed 30-unit development.

1511 A Street, NE – Committee will review most recent drawings provided by developer and consider providing further comments to the Zoning Administrator.

 

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April 13, 2014 · 11:04 pm

The Week Ahead….Remington’s Last Stand

Remington's née Equus , 1980 - 2014

Remington’s née Equus , 1980 – 2014

The Week Ahead….Remington’s Last Stand

By Larry Janezich

Monday, April 14

Remington’s Last Stand.  Remington’s closes today.  Expect a crowd this evening to celebrate the end of a 30/34 year run for the Capitol Hill institution.  The building (actually two adjacent buildings) was reportedly sold a year ago for $3 million to Mountain View Burleson, LLC.   Equus, the city’s original gay country-western bar which occupied half the building, took over the adjacent Gallagher’s and became Remington’s in the mid 1980’s.  Word on the street is that the building(s) will be gutted and divided.  Half will be occupied by a Sprint outlet; the new owners hope to open a food and beverage venue in the other half – the latter being uncertain.  Mountain View Burleson is a Texas LLC which lists its principle operation as Mountain View Development Company, Virginia Beach, VA.

Monday, April 14

ANC 6D meets at 7:00pm, DCRA Meeting Room, 1100 4th Street SW, 2nd Floor

Agenda items:

WMATA Presentation – Development at Navy Yard Metro

Channel Square Use Variance

Tour de Cure Race, American Diabetes Association

Monday, April 14

Quarterly RFK Community Outreach Meeting hosted by Events DC. Meeting is at 8:30pm in the RFK Stadium Media Room (South entrance, 4th Floor).

Tuesday April 15

CHRS Board of Directors meets at 6:30pm, Capitol Hill Townhomes, 750 6th Street, SE

Wednesday, April 16

ANC6a Economic Development Committee meeting has been postponed until Wednesday, April 23.

Thursday, April 17

PSA 108 meets at 7:00pm, Liberty Baptist Church, 527 Kentucky Avenue SE.

MPD Lt. JB Dykes.

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April 12, 2014 · 7:22 pm

Residents Turn Out for Rat Summit – Barracks Row Restaurants, Not So Much

 

The Norwegian Rat, by James Audubon

The Norwegian Rat, by James Audubon

Bobby Corrigan, Rodentologist, Featured Speaker at Today's Rat Summit

Bobby Corrigan, Rodentologist, Featured Speaker at Today’s Rat Summit

Residents but No Restaurant Reps Attended Today's Rat Summit

Residents but No Restaurant Reps Attended Today’s Rat Summit

Residents Turn Out for Rat Summit – Barracks Row Restaurants, Not So Much

by Larry Janezich

Some 20 residents and a handful of ANC commissioners showed up for the Community Ward Six Rat Summit in Hill Center today.  The owners and managers of the source of many of the area’s rodent problems – the Barracks Row restaurants – appeared to be under represented, if present at all.  This was despite the efforts of the ANC commissioners Peisch and Oldenburg to encourage turnout among the restaurants in the 400 and 500 blocks of 8th Street, SE.

Restaurants are key players in the problem, according to Bobby Corrigan, Ph.D., of Corrigan Consulting, of Richmond, the featured speaker and one of the area’s leading experts on rodents.   He noted that one 60 pound bag of restaurant trash can supply edibles for 1,000 rats for a day.

According to Corrigan restaurant and resident trash disposal is a primary contributor to sustaining a neighborhoods rodent population.  Regarding restaurants, he said the push for enforcement by residents and resistance by business can create a weak link in the eradication chain which allows rats to take advantage.  Today’s meeting provided evidence to back up this statement.

Corrigan said that rats need food, shelter, and water.  The first two of these are the factors which can be controlled – water is widely available, and a rat can survive on the water from the morning dew on grass.

Some key rat facts listed by Corrigan include:

  • Doughnuts, bagels, and fried chicken are favorite rat foods, which they learn to like from the milk produced by a nursing mother who feeds on those items.
  • Rats live an average of 5 – 7 months of life when on the street; in a cage, they would survive longer.
  • A rat’s range can be as short as 25 feet from the nest up to 450 feet, depending on the source of food.
  • Corrigan says there are no “super rats,” and he will buy dinner for anyone bringing him a two pound rat.
  • Rats love alleys and other areas where residents regularly put out trash.
  • Rodents can enter a building through a hole the size of a dime, or through a crack the width of a Number 2 pencil.  The oily smear surrounding a rat hole in a wall is characteristic and comes from sebum secreted by the rat’s sebaceous glands.
  • Composting does not attract rats if cone correctly.
  • If you garden in an area with rats, it is difficult to keep them out.
  • Black box bait station poisoning is not particularly effective for rats regularly dining on a favorite food to which they have become accustomed.
  • Treating burrows with poison bait can be effective if monitored and followed up on by the city. Poison Tracking powder can be effective but affects pets and other mammals, and like bait takes a week or two to kill a rat.
  • Construction excavation does not necessarily produce rats – the rats have to be present.
  • “Excluder Rodent Proofing” is probably the best technology available on rodent control.

Some residents participating in today’s meeting said they were there because of rodent issues attending the restaurant group at 1st and D, SE (Tortilla Coast, Talay Thai, and Bullfeathers, and Ninella on 13th Street, SE, on Lincoln Park.  Capitol Hill Corner has posted several articles on Capitol Hill’s rat problem pointing to the restaurant group at 13th and Pennsylvania SE, http://bit.ly/RdVSfW ,  the Starbuck’s at 3rd and Pennsylvania http://bit.ly/1hZbdJN , Barracks Row  http://bit.ly/NK8lps , and Metro Center http://bit.ly/1aHa3T8.  ANC6b has enlisted city agencies to conduct a coordinated effort to address the Metro Center problem and individual commissioners are moving to address some of the other areas.

The key to rodent control is a joint effort by the community and city to make the environment unfriendly.  Restaurants must clean up and power wash alleys, clean disposal bins, and control trash disposal by keeping it inside until hauled away or disposing of it in a rodent proof trash compacter.

Things which community can do are the following.

Dispose of dog waste in residential trash bins with lids (your own, not those of other residents) or in public disposals which are impervious to access by rats.

Dispose of household trash in bins with lids – never in plastic bags.

Use landscaping which is unfriendly to rodents – bush and shrub choice (conical) are critical.

Corrigan stressed that “the rat is not forgiving of our mistakes,” and offered to answer questions which are emailed to him at: cityrats@icloud.com.

Today’s event was sponsored by CM Tommy Wells, DC DOH, and ANC6b.

 

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