1217-1219 Good Hope Road, future women's shelter.

It's as predictable as the sunrise, from Petworth to Congress Heights to Truxton Circle to Hill East: A social services organization tries to locate a facility in a neighborhood, the neighbors feel blindsided, and the battle is joined. This time, the drama is about to play out again in the heart of Anacostia's business district, where Calvary Women's Services is redeveloping a 14,000-square-foot building as a women's shelter.

The 28-year-old organization bought the property, in a former Elks Lodge right across from the Department of Housing and Community Development on Good Hope Road SE, for $950,000 in December. It's a $3 million project, and after landing a $175,000 gift from the Cafritz Foundation, organizers are hoping to raise another $750,000 by the end of the year to make the numbers work. When it's operational, the facility will house 50 women at night and serve meals to 100 per day, along with providing other supportive services.

Despite the fact that it's been in the works for seven months now, lots of people in the area found out about it just last week, in an email blast from Council Chairman Kwame Brown. Today, Advisory Neighborhood Commissioner Greta Fuller fired off a letter to the relevant agency directors complaining that the area was already overburdened with homeless services and drug treatment programs; there are four others within a few blocks of Calvary's site.

"It's a very frustrating process, because the community wants so desperately to move forward, and when services like this are on every block in our neighborhood, it makes it difficult to promote the neighborhood," says Charles Wilson, president of the Historic Anacostia Block Association. "You can tell that some people have been maneuvering behind the scenes to move this process forward...you just get a sense that politicians have made it possible for them to make the transition to Good Hope Road."

Wilson's got a point, of course. While not much has been willing to rent space there yet, that's theoretically a prime retail or restaurant location, and it's hard to convince a sit-down restaurant to put their sidewalk cafe right next to a homeless shelter (whether or not the aversion is well-founded). And of course, Calvary did itself no favors by getting this far along in the process without starting a discussion with community groups; that's only asking for hostility.

Still, there's also no reason why a well-managed shelter has to be a blight on the community. Many are fairly innocuous. And there's clearly a need for these kinds of services, somewhere. Calvary's executive director Kris Thompson was on vacation and unable to comment, but staff are apparently supposed to defend their program at ANC 8A's meeting tomorrow.

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UPDATE, August 2: Here's a response to complaints about the use of the term "NIMBY" on this post.

To the extent that management can demonstrate its ability to structurally balance its budget, replenish its fund balances, and manage risks associated with the United Medical Center (UMC) and its capital improvement plan over the long term, we could raise the rating. Factors that could place downward pressure on the rating include the district's failure to reverse its current trend of declining fund reserve and achieve structural balance on a generally accepted accounting principles basis, increased costs and liabilities associated with the district's recent purchase of UMC; and continued capital pressures.

Which makes it crystal clear why Gray booted UMC board members who were opposed to turning the hospital back over to the private sector: He needs to show the rating agencies that he's serious about getting it off the District's books.

Evans has been playing this game for longer than anybody, and thinks that one of former mayor Adrian Fenty's biggest mistakes was promising the rating agencies that he wouldn't dip into the District's savings account, and then doing it anyway. "I said 'what are you doing, you said you weren't going to do that!'" as Evans recalled the conversation last week.

Here's what Evans asks the guys in the room who give D.C. its letter grade: Rate the District with Boston, Chicago, and Denver–which typically get high ratings–and not Baltimore, Cleveland, or Detroit. The BCDs, get it?

Photo from flickr user michaelaston.

• $2,374,000 in security and janitorial services for municipal buildings. Heads up SEIU!
• $500,000 from ABRA reimbursable detail program: Fewer cops on rowdy streetcorners after hours.
• $300,000 from the Low Income Energy Assistance Program, which helps poor families pay for heat in the winter.
• $689,000 from the Renewable Energy Incentive Program, which helps people put solar panels on their houses.
• $300,000 from tree planting.
• $808,000 from alley repaving.
• $1,091,000 from repaving local roads.
• $300,000 from pedestrian safety enhancements.
• $4,691,000 from postponing implementation of the Healthy Schools Act.
• $300,000 from healthy grocery initiatives from the Department of Small and Local Business Development.
• $1,595,000 from commercial revitalization initiatives, like storefront renovations.
• $40,000 in postage at Office of Planning (they spend $40,000 on postage?)
• $38,000 from the Office of Planning's zoning map maintenance and development project, which makes this reporter saddest of all.

Tuesday morning marked a starchy celebration on Irving Street NW in Columbia Heights: The grand opening of IHOP’s 1,500th location, complete with a dancing pancake, free short stacks of pancakes, and a Washington Monument shaped out of...you get the picture. Inside, IHOP execs visiting from California for the occasion congregated in the back room, while D.C. politicians wore royal blue IHOP cardigans and were presented with commemorative spatulas before digging into their complimentary breakfast.

It’s only fitting that IHOP should be fêting the locals. The owners are, after all, benefiting from $46.9 million in tax increment financing the city earmarked to build the DCUSA shopping complex in 2006. Developer Grid Properties agreed to set aside 15,000 square feet for small, local, minority-owned businesses, which would get an approximately 30 percent discount on rent in those spaces.

Finding those tenants was left up to the non-profit Development Corporation of Columbia Heights. Four years later, exactly two businesses have taken the deal: IHOP, and Señor Chicken, the third location of a Peruvian rotisserie place. It’s not for lack of interest; DCCH’s president and CEO Robert Moore says around 65 small businesses asked about the spaces. Usually because of financing issues, none of them worked out—the closest was another locally owned franchise of Quizno’s. (Meanwhile, some small businesses DCCH helped place in the nearby Tivoli building didn’t make it).

IHOP, on the other hand, kept cruising. Jackson Investment Company, a small residential real estate outfit that had signed a three-store deal with IHOP, first heard about the location in 2007. The partnership of a father and two brothers was an attractive candidate for a number of reasons—African American, Ward 8-based, retired police and military. But what DCCH liked most was the attribute small business incentives are typically set up to avoid: They were part of an international brand that helped the store get off the ground and will make it harder to fail.

“All the new businesses that you see are franchises,” says Moore. “That’s a stronger way, and it’s a safer way for people to invest.”

—

One morning last week, franchise owner Tyoka Jackson ambles out onto the restaurant floor in a track suit—a habit left over from 12 years in the National Football League—and lowers his considerable bulk onto a cushioned bench. He’d spent most of his time at the Columbia Heights location over the last few weeks, overseeing build-out and training, and was anxious to know how the new store is perceived.

“What’s the buzz?” he asks. “People are saying it’s gonna bring an ‘element.’” Jackson reads the local blogs, which have been pretty much split down the middle on the prospect of a downmarket diner on Irving Street. “When did IHOP become a hot spot for gang members and criminals?” he wonders.

That’s the thing about being a franchise, for better and for worse: People bring their own impressions to it, and for many, it’s just another chain in a complex already bursting with brands. In some ways, the Jacksons’ IHOP enterprise is a small business. They’ve put in the $1 million for construction, made hiring decisions, and will be the ones to lose their shirts if the place fails.

But the Jacksons have a few advantages an independent business could never claim. They get expert business consulting courtesy of the mothership, pooled television advertising, and supplies from a nationwide sourcing cooperative shared with corporate sister Applebees. Recipe development and product design are outsourced to IHOP’s labs in Glendale, Calif.

The last advantage lies in not being an independent business: IHOP is a known quantity.

“Having a sign that says Jackson’s Pancakes is different from putting a sign up that says IHOP,” Jackson explains. “That is a level of comfort for some people.”

Even with all that assistance, Jackson says he couldn’t have afforded market rate rents in DCUSA. Which raises the question: When a sure-fire franchise can qualify for a mandated “small business” set-aside, why would a developer ever go for an actual independent entrepreneur? Ward 1 Councilmember Jim Graham says he’s been trying to lure IHOP since 2002, when he proposed a location at 10th and U streets NW. He doesn’t see a substantive difference between a franchise like the Jacksons’ and something homegrown, and has been entirely sanguine about other chains opening on his turf.

The local business community, predictably, looks at things a little differently. At an October launch party for the new website of non-profit advocacy group Think Local First D.C., Graham put himself in for an awkward moment when—right after D.C. Council Chairman-elect Kwame Brown sang the praises of independents—he talked about how great it was that IHOP would be opening in DCUSA the next month.

That didn’t impress Constantine Stavropoulos, owner of popular hangout spots Open City, Tryst, and the Diner. The successful restaurateur says he never heard of any outreach to established entrepreneurs from DCCH about the DCUSA spot—even though developers are banging down his door to put his next location in their ground-level retail space.

Neither, for that matter, did the Tivoli North Business Association, which represents small businesses north of Park Road. Nor did the Mount Pleasant Business Association. If DCCH was trying to find an excellent non-franchise tenant for that space, it was keeping a pretty good secret.

—

One of the groups happiest about IHOP’s new location in Columbia Heights? IHOP itself. If the performance of DCUSA’s other anchor tenants is any indication, the Columbia Heights IHOP should also be a high performer, which feeds back into the corporate coffers. On top of a $40,000 franchise fee, 4.5 percent of Jackson’s net sales goes straight to Glendale (he pays another 3 percent for regional advertising).

On Monday, CEO Jean Birch sits drinking coffee at a corner booth with Patrick Lenow, communications director for IHOP’s parent company, DineEquity Inc. Corporate executives don’t always attend store openings, but the 1,500th was a special occasion.

“This is a big milestone,” Birch says. “We are the 20th largest restaurant chain in the country. It’s a big deal to us.”

Though it’s up to the franchisee to find financing for each new store, IHOP headquarters helps along the way, and signs off on each location. Birch says getting a set-aside rent discount was “fairly unique” for her franchises. It’s fairly unique for the District, too—none of the relevant government agencies could think of another instance where a franchise had received a small business incentive. Typically, franchises don’t qualify as Certified Business Enterprises, the designation that gets them preferential treatment on many government contracts and incentive programs.

To listen to everyone involved in the IHOP deal, taking a chance on an independent operator would be an insane risk for a developer. To prove it, Lenow pages through the laminated menu, pointing out some of their regional specials, the relatively low-calorie Simple & Fit menu, and the mixed beef-and-bacon burgers.

“Would an individual entrepreneur bring that same creativity?” Lenow asks, rhetorically. “Trial-and-error is very expensive.”

Got a real-estate tip? Send suggestions to ldepillis@washingtoncitypaper.com. Or call (202) 650-6928.

Photos by Darrow Montgomery

(Lydia DePillis)

The Washington D.C. Association of REALTORs–yes, they capitalize the term–just announced their endorsement of Council Chairman Vince Gray for Mayor and Councilmember Kwame Brown for Chairman. The organization also backed incumbent Councilmembers Phil Mendelson, David Catania, Tommy Wells, and Harry Thomas.

The release reads: "WDCAR PAC endorsed after face-to-face interviews with candidates, a review of candidate's answers to questionnaires, and extensive discussions of issues, including the District budget, education reform, vacant property, real estate taxes, and the Real Estate Guaranty Fund, among others."

Looking at the Greater Capital Area Association of REALTORs' stances on issues, it seems possible that WDCAR may have taken exception to the Fenty administration's imposition of "nuisance" fees, especially the administration-backed new class of vacant property tax legislation. The industry group also opposes rent control, which both mayoral candidates support (though since the city's biggest rent control advocate, the Tenants Advocacy Coalition, also endorsed Gray, that may not have been the dealbreaker for WDCAR).

The only omission from WDCAR's slate in a competitive race is at-large Councilmember Michael Brown, who talks a lot about preserving affordable housing and not letting newcomers displace long-term residents. Newcomers, of course, are usually the ones buying houses.

A boat very similar to the one named Bullet Proof. (yachttraderonline.com)

Deep in Mike DeBonis' thorough background check of at-large Councilmember Kwame Brown's financial history lies a masterful bit of spin.

"I was persistent because I believed that D.C. residents should have an opportunity to have a boat and be a part of a club," Brown said, referring to his ownership of a 1994 Chris-Craft Continental express cruiser named Bullet Proof, for which he paid $50,000, and membership in the District Yacht Club.

Politicians take note: The next time you partake in activities far beyond your means, explain away the consequences by saying you're just setting an example for your constituents. A brave, bold action even!

First Cash doled out $500 to Ward 1 Councilmember Jim Graham, $1500 to Kwame Brown's race for chairman, $1,000 to Councilmember-at-large David Catania, and $2,000 to Council Chairman Vince Gray.

Rick Wessel, First Cash's CEO, also cut checks to Graham ($500) and Gray ($2,000) as well as Ward 5 Councilmember Harry Thomas ($500).

Councilmembers Tommy Wells and Mary Cheh recieved none of First Cash's largesse, and neither did Mayor Adrian Fenty. I haven't managed to get all of the reports out of the Campaign Finance Office's jankety website, but will update when I can. Probably safe to assume that Bowser won't be getting any of First Cash's cash, though. And it wouldn't make sense for First Cash to fund any challengers–the bill will likely come to a vote before they have a chance to take office.

Roderic Woodson, First Cash's attorney from Holland and Knight–and a generous donor himself–told Housing Complex yesterday that his client would shut down its two existing pawnshops in the District if the Council passes Bowser's bill in its current form. Look forward to more on this issue in next week's column!

To bring you up to speed: Soon after their rally on the corner of 29th and Garfield, ANC 3C unanimously voted to oppose the building project and to join an appeal to the Board of Zoning Adjustment. Last Friday, the neighbors met with officials from the Mayor’s office, DCRA, the Urban Forestry Administration, the Office of Planning, and Councilmember Phil Mendelson to try to sort things out, and learned more about how the Zoning Administrator had done little or nothing to evaluate the potential effect of upscaling the woodsy corner.

On Monday, however, the neighbors were dealt a disappointment: DCRA Director Linda Argo said that the Zoning Administrator’s decision to use his “minor flexibility discretion” in subdividing the lot for two homes was “appropriate and correct.” Still, Argo said that the permits would be reviewed by all relevant agencies, including DDOT, WASA, and the Department of the Environment. DCRA will also be meeting personally with the developer to ensure compliance with all regulations.

The Woodley Parkers sent their letter to Mayor Fenty the same day, asking basically the same thing—a stay on all construction until the BZA appeal had been heard. The letter was signed by Councilmembers Cheh, Mendelson, David Catania, Michael Brown, Kwame Brown, and chairman Vince Gray.

“It’s going to be a long, hot summer,” neighborhood spokeswoman Lisa Mitiguy says.

A familiar, long-running story is back in the news—and that's definitely a bad thing.

For years, D.C. officials have wanted to build a hotel to support big groups hosting events at the Washington Convention Center. That project—despite the economic downturn—was rejuvenated this summer when Councilmembers Kwame Brown (At-large) and Jack Evans (Ward 2) decided it could wait no longer.*

And so we got our convention center hotel after a new financing deal was inked! Two thousand jobs were on the way! An August 2009 press release from the city stated that "the development team expects to break ground on the hotel project this fall and it is expected to be complete in 2013."

Yet, fall has come and gone, and I recall no groundbreaking. Instead, D.C. was served with another roadblock, this time in the form of a lawsuit from a competing developer.  The Washington Post covers all the latest twists—"No construction bonds have been issued, and a D.C. Superior Court judge has twice refused to dismiss the case"—in a story published yesterday.

On its face, the lawsuit by Wardman Investor, a company controlled by Chevy Chase-based JBG Companies, is a protest against the bidding process. The city selected Bethesda-based Marriott several years ago to develop the hotel, but when financing grew scarce, increased the public subsidy before the deal was finalized last summer.

Wardman Investor claims the D.C. Council acted illegally by negotiating exclusively with Marriott, granting the firm "extraordinarily favorable terms," including not only the subsidy but also a 99-year lease on a city-owned site, with no payments during construction or the first three years of operation. Marriott would run the hotel, which would be built by Quadrangle Development and Capstone Development.

The suit seeks to halt construction and require that the city solicit new bids for the project. When the city initially opened the competition, JBG did not bid, but managing partner Ben Jacobs said the developer "would have been an obvious contender" if the original bidding process had included the new terms negotiated with Marriott.

*After all, Disney had just purchased 15 acres near National Harbor, igniting new questions about whether P.G. county's own hotel mecca was eating up hospitality profits that could be going to D.C.

Image by Kjarrett, Flickr Creative Commons Attribution License

For a lot of Washingtonians, today is all about the late Abe Pollin—for better, and for worse in some cases.

In Chinatown, well-wishers will drop off stuffed animals, Lego sets and others toys to honor Pollin at the site of his most famous accomplishment, the Verizon Center. Meanwhile, across town in Ward 7, local civic leaders are boycotting the groundbreaking of  one of the remaining elements of Pollin's legacy, his Linda Joy and Kenneth Jay Pollin Memorial Community Development.

The development, located near the edge of Anacostia Park, is a joint project of the Pollin family and Enterprise Homes of Columbia. When complete, it will include 125 affordable for-sale and rental homes, including 83 three-bedroom townhouses for sale to buyers earning 40 to 100 percent of the area median income (AMI), and 42 rental units available in one-, two- and three-bedroom apartments and three-bedroom townhouses, according to the invitation for the groundbreaking.

Ward 7 leaders are concerned about the development's community benefits agreement, which is still being negotiated.   The controversy first arose on Saturday when local ANC commissioners and other civic leaders first heard about the groundbreaking, says ANC commissioner Willette Seaward.

Seaward says that one developer representative visited her ANC earlier this year and said that there was some kind of community agreement—including a program for seniors at the Verizon Center, 50 turkeys, maybe a turkey dinner?— ironed out with the last set of ANC commissioners, who were replaced after an election in November 2008.

"There's no real record that was left from the previous (ANC) chair that really addresses the fact that any of this was legal and supported by the community," says Seaward.

The new Pollin project is being built on public land, currently home to the Parkside Additions, according to Dena Michaelson, spokesperson for the DC Housing Authority (DCHA).

Michaelson says she's unfamiliar with any community benefits package involving poultry and seniors, and essentially...not to worry.

"I don't know about that turkey agreement," Michaelson said on the phone this morning about to head over to the Ward 7 groundbreaking.

Michaelson did note that her office is still working with the developer on a community benefits agreement that was far from finalized.

"The groundbreaking today is largely ceremonial, " she says. Planners had hoped to do it before Pollin's passing, but at least today's event is coinciding with the activities in the Verizon Center, which will be culminating with a "Remembering Abe" service tonight at 7 p.m., according to NBCwashington.com.  The event will feature  D.C. Mayor Adrian M. Fenty and NBA Hall of Famers Wes Unseld and Earl Monroe.

Michaelson says that DCHA is still working on securing HUD housing vouchers for residents currently living in the Parkside Additions. Until those are secured and people are moved out, there will be no major construction/demolition.

Meanwhile, Ward 7 leaders had asked certain councilmembers to boycott the event—a tricky political maneuver considering it involved Abe Pollin, one of the city's most beloved, recently-deceased citizens.

Seaward says her group convinced Council Chair Vincent Gray and At-Large Councilmember Kwame Brown not to attend. (A Gray staff member confirmed that Gray didn't go, but as far as she knew that was just a logistical decision. Brown did not attend the event.)

"I think people are putting the cart before the horse," Michaelson said.