Plans to Redevelop O Street Market Are Met With Cautious Optimism

"I'm not as excited as I was three years ago," she said. Her attitude toward the project: She'll believe it when she sees it. As for the convention center, she said she gets no business from it -- "Nothing."

The largest projected disruption during construction would probably be the closing of the Giant for as long as two years. The supermarket said it would offer a free shuttle to its Columbia Heights store. Roadside said that it would fund a Peapod delivery service for area senior citizens, making it possible to order groceries online without delivery fees.

Some questions about the economics of the project remain. The housing market across the country has been shrinking. Douglas Jemal, another District developer who has undertaken projects similar to the O Street Market, said that he is concentrating on smaller buildings.

Susan Linsky, Roadside's manager for the project, said that the company is not concerned about the tighter market.

"We think the economy will be doing better in a year," Linsky said. "And [the project] is in the District of Columbia. While things are not as go-go as they were, there's still a very solid market in the city."

Some D.C. officials are nervous about the District's large commitment to the project. The $35 million that would be provided by the District, pending final council approval in September, would come from property taxes generated by the project. If the anticipated increases in tax revenue are not realized, the city might have to turn to other sources to pay for the project.

That makes it critical for the city to be cautious, some officials argue.

No tenant for the hotel has been signed, but 44 percent of the taxes to repay the city would come from the hotel, said John Ross, a senior adviser in the Office of the Chief Financial Officer. At a hearing Wednesday, Ross said that his office would be "more comfortable" if there was a tenant before the city contributed any money.

The criticisms do not faze D.C. Council member Jack Evans (D-Ward 2), whose district includes the Shaw neighborhood. "You have to take a little bit of a chance," he said. "The flipside is the wild success we've had on these things."