Discussion Transcript

Anacostia Waterfront Development

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Monty Hoffman and Adrian Washington
CEO, PN Hoffman; CEO, Anacostia Waterfront Corp.
Thursday, October 19, 2006; 1:00 PM

Monty Hoffman , chief executive of PN Hoffman, and Adrian Washington , chief executive of the Anacostia Waterfront Corp., were online to discuss development efforts along the Anacostia River waterfront in Southwest D.C.

The quasi-public Anacostia Waterfront Corp. is charged with revitalizing the Southeast and Southwest waterfronts. It recently chose a team of developers led by District housing builder PN Hoffman to redo 47 acres in Southwest.

A transcript follows

Related Articles:

Southwest Waterfront Will Finally Get Over the '60s

Developers Selected to Transform Southwest Waterfront

A gallery of artists' renderings of proposed development in Southwest is available online, as is a video with reactions of neighborhood residents.

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Washington, DC: The Southwest Waterfront currently has a lot of pavement and relatively little tree cover, except along parts of Maine Avenue. How will the redevelopment reduce the amount of impervious surface and restore tree canopy in this area?

Monty Hoffman: This is for me, personally, one of my biggest issues with the SW waterfront. Part of the plan to reconnect the community with its waterfront is to create inviting green spaces throughout the redevelopment. The plan calls for 14 acres of parks, promenades and plazas.This includes a 5-acre park at the southeastern end of the site, an urban plaza at the northwestern end of the site and small parks at the terminus of all major streets. Trees will be a major part of this scheme. "Urban" doesn't have to mean "concrete!"

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Gaithersburg MD: We are delighted that you are going to try to achieve LEED silver certification. However, you can achieve LEED silver certification and still pollute the Anacostia River. Since there are choices that you make among the requirements of LEED certification, what steps you will take to reduce or eliminate pollutants going into the Anacostia River?

Monty Hoffman: Our plan does not create additional damage to the Anacostia. In fact, our team includes experts in environmental impact and green building that will help us meet that goal. There will be temporary stormwater systems in place during construction that will filter any runoff. Further, all contaminated soil will be hauled off and disposed of in a proper manner.

The LEED requirements are quite general and few of the individual credits realate directly to stormwater managment (foucsing solely on quantity and quality of runoff), sediment and erosion control, and other components that are necessary to prevent pollution of the Anacostia and Potomac watersheds. Hoffman-Struever is committed to exceeding the LEED requirements in these areas and developing a more holistic approach to protecing the rivers by working with experts and policymakers in the fields of civil engineering, environmental protection, and environmental sustainability.

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Ward 8: How come all the attention is paid to SW...when will developers and DC government work on putting more shops and restaurants into SE, especially along MLK?

Adrian Washington: We are very focused on developing both sides of the Anacostia. We have been holding community meetings for the redevelopment of Poplar Point, a major site we will redevelop in Ward 8 and Park Side, a major project in Ward 7. We are also making a proposal to Metro to move their head quarters to the Anacostia Metro Station in Ward 8, which will also be our permanent head quarters.

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SW, DC: There are a growing number of families living in SWDC. Any given afternoon there are several children who play at the Waterfront. Is there a plan to include playground equipment as part of the redevelopment?

Monty Hoffman: As mentioned, parks are planned throughout the redevelopment. Additionally, youth and family involvement are cornerstones of our plan. While the specifics of the parks, along with any equipment, have not been determined, it's an excellent suggestion!

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Washington D.C. : With so much emphasis on speed (must be open by 2008), parking (dispute over above ground/underground) and price caps (611 million last I checked), isn't the stadium project running a real danger of being a compromised project from the get-go that will end up being a rush job that fails to deliver the promised aesthetic and development value that this project has promised? Doesn't it make more sense to make sure this thing is done right, than fast and cheap?

Adrian Washington: I couldn't agree more. In my mind there has been way too much emphasis on "getting it done on time and on budget". On time is a good goal, but small delays wont matter much to the city. On budget is of course important, but not if the city loses millions in the sale of air rights and future tax revenues. The most important goal is to "get it done right" for the long term benefit of the Anacostia Waterfront and the District.

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Washington, DC: The job training community wants to work with you to ensure that DC residents get 51% of the new jobs as required by DC law and the mandates of the Anacostia Waterfront Corporation Act. How do you envision reaching that goal?

Monty Hoffman: The hiring requirements will be satisfied through a combination of DC Dep't of Employment services First Source hiring process, and the newly-created AWC Workforce Intermediary Program. Further, we intend to work with the Cardozo Shaw design and trades academy, as well as Booker T Washington Charter School, to hire graduates and students on a full- or part-time basis. Additionally we plan that 20% of the new jobs will be filled by Ward 8 residents.

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Washington, D.C.: I've heard that there is a possible maritime education center included in your project. Can you please give some more information about this project?

-Mark

Monty Hoffman: There are a few organizations that may be of interest to you:

National Maritime Heritage Foundation (NMHF,) a local non-profit that has been teaching sailing to District youth for years.

Living Classrooms, a non-profit dedicated to educating at-risk youth in the District and preparing them for and placing them in jobs. Living Classrooms' first Southwest Waterfront project will be the rebuilding of The Pearl, the historic schooner of enormous cultural significance to the District.

Living Planet Aquarium, an operator of educational aquariums primarily used for youth education.

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Native Washingtonian: Congratulations to PN Hoffman and team for being selected to lead revitalization efforts at the Southwest Waterfront.

The City Pier District concept looks particularly interesting. And, please do build the pedestrian bridges.

The concern that I have, and this question is mainly for Adrian Washington, is how and why has it taken over 2 years for control of the Southwest Waterfront holdings to be transferred from the NCRC to the AWC? It seems to me as if the DC Attorney General's office is at the center of the legal issues stalemate. What are the legal issues that have yet to be resolved for this transfer to take place? Shouldn't the DC Attorney General's office be more involved in settling the legal issues between the two agencies. It is in the best interest of the city. I have seen a lot of redevelopment getting held hostage by one or two people in the city government. The DC USA project comes to mind as an example. It is great that the AWC has selected a master developer, but, if the transfer of property holdings does not occur soon, then redevelopment timelines will begin to be impacted.

Adrian Washington: There are many issues too long to go into now. In my mind the key point is the original legislation is fatally flawed. It's too complicated with too many moving parts and players involved. It's a bureaucrat's delight. That's why we're supporting Sharon Ambrose's new legislation to get the transfer done now. It's clean and simple, and will provide NCRC with the McMillan Resevoir (and other assets if the Council wants) so that they can continue to fullfill their mission.

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Washington, DC: Contrary to reports in the Post, this development is on the Washington Channel, not the Anacostia. Actually the confluence of the Potomac and Anacostia rivers is approximately one mile from the proposed development. Nevertheless, can you guarantee that their will be a liveaboard community in a marina in the Washington Channel? Also, what guarantees can there be that this will be a platinum LEED development?

Monty Hoffman: In answer to your first question: yes, we plan to maintain a livaboard community in the Channel. In fact, we are in discussions with the Gangplank Slipholders Association (GPSA) and the Washington Waterfront Association to ensure that all existing stakeholders participate in our planning.

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Monty Hoffman: And in answer to the 2nd part of your question, we are committed to providing a LEED silver project, which will be the first mixed-use project of its kind in the District.

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Washington, DC: I heard there is going to be a "cirque du soleil" and a "waterpark." Sounds a little Disney-ish. What kind of environment are you creating?

Monty Hoffman: Cirque du Soleil was initially proposed as an example of the type of cultural entertainment that might be found at the northwest end of the site. There is nothing specific in the works with the organization at this time. As for a waterpark - that erroneously appeared in an article a few months ago. The project features many open spaces and parks to be enjoyed by the public. We have planned a 5-acre park at the southeastern end of the site, an urban plaza at the northwestern end of the site and small parks at the terminus of all major streets. There will not be a "waterpark."

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SW Washington: One of the main problems with development in our neighborhood has been two very dysfunctional groups -- the community ANC, with two members who are quick to play racial politics over most issues, particularly development, and the Southwest Neighborhood Assembly, which tends to antagonize many, if not all, newcomers to the neighborhood.

It has played out in the arguments over the old Friendship Baptist Church, the redevelopment of old Waterside Mall and the Randall School/Millennium Arts Center, among other sites.

I think this is a key reason why development has largely skipped our neighborhood in recent years and moved to the area around the new Nationals' stadium.

Given this situation, what will you do to ensure the development in our neighborhood will allow for better mixed-income development instead of the income segregation we currently have, give residents a mixture of local and nationally-owned businesses and becomes a place that will be oriented to residents but friendly to visitors?

Thank you.

Adrian Washington: AWC and Hoffman have met extensively with the ANC -- I wont speak for them but believe that they very much support our proposal.

It is vitally important to us that this be a true mixed-income neighborhood with a large selection of local businesses. Our development team is committed to do this -- for example the 30% level of affordable housing is the highest in the city for a project of this type.

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Washington, D.C.: Thanks for the chat guys. I think we're all dying to know: Is the stadium going to be completed on time, will the parking dispute be resolved, and can we expect the area to experience development similar to that of Chinatown and the Verizon Center?

Adrian Washington: yes

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Washington, D.C.:

What vested interest does the African-American business community, both for-profit and not-for-profit, have in the billion-dollar development of the SW waterfront? What outreach has been made to offer a modicum of inclusiveness from an ownership perspective?

Monty Hoffman: Our team includes over 10 LSDBE firms directly involved in the design, development, construction, financing, and leasing/marketing of the project. And it includes LSDBE ownership comprising 23% beneficial ownership throughout the life of the development.

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Troy, Mich.: Who is the architect, and how much experience does the firm have on this type of development?

Monty Hoffman: We have not chosen the architect yet. We will work with the AWC over the next several months to select the design and engineering team for the project.

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DC: Where will the stadium for DC United be placed? How close is this to becoming a reality?

Adrian Washington: We are currently in the community input/planning stage for the redevelopment of Poplar Point, a 110 acre site on the Anacostia River near historic Anacostia. A soccer stadium is one of the uses contemplated for the site, but I want to truly emphasize that no decisions have been made so far. What's most important is that the use of the site benefit the immediate community and the city as a whole. Even if a soccer stadium goes there the bulk of the development would still be housing and retail.

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Columbia Heights: If the stadium plan includes surface parking, where would it go? Wouldn't this be a major obstacle to developing this area for its highest and best use?

Adrian Washington: Surface parking would go on the roughly 5 acres to the north of the stadium. If the team owners cooperate -- and this is a big if -- development on the site could be done in the future.

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Anthony, SW DC!: As a Southwest resident, I am very excited to be surrounded by development projects. I purchased in Southwest because it was affordable and relatively safe. It looks like the secret is out, as housing prices are going up all around me. Does the developer, and DC for that matter, take into account that with each development taking place - it becomes harder and harder for regular working class people to afford housing in the District?

Monty Hoffman: We are planning to provide approximately 955 units of new housing along the waterfront. Of these, 290 units will be affordable. This is true affordability - half of these units will be affordable to a family of four earning less than $54,000 per year and another half of them affordable to a family of four earning less than $27,000 per year. McCormack Baron Salazar, our affordable housing partner, is the national leader in the creation of true mixed-income affordable housing and has currently developed over 18,000 units nationwide.

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Capitol Hill, D.C.: Why will work not begin on the waterfront till 2009? Do you worry about losing momentum on the project?

Adrian Washington: A project of this magnitude is tremendously complicated -- zoning, master planning, permitting, review by the office of planning, commission on fine arts, NCPC, etc., not to mention lots and lots of community input. 2009 is an aggressive but achievable timeline.

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Los Angeles, CA: As a former resident of DC, I enjoyed the hidden jewel of the Southwest, the Fish Warf, and am pleased to see it will be preserved. However, I am concerned about wholesale redevelopment by one major player or group - a lesson that should have been learned from the destructive 60's. What's wrong with setting up a traditional plan, where the landscaping, public space and infrastructure are laid out by the AWC and individual lots are sold and developed with overarching guidelines...allow the neighborhood to grow? This is how the great neighborhoods of DC came about. Why allow development of the entire site by a single team?

Adrian Washington: First, a project of this type is extremely complicated. For example infrastructure (parking, streets, piers, utilities, etc) must be completely redone for the entire site. You need an experienced master developer with great skill and resources to get this done.

Having said this, the Hoffman/Streuver team is a large, diverse collection of high quality companies -- extraordinary national companies with experience in affordable housing, waterfront development and green building, mixed with a great collection of local developers and builders. It's really the best of both worlds.

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Washington, D.C.: So much of the planned development alongside the Anacostia involves housing. Plus, there are a ton of other housing developments being built throughout the city. How do you expect to fill all of these housing spaces, especially at a time when the real estate market is not exactly at its best?

Adrian Washington: I'm admittedly biased, but I think Washington DC is the greatest city in the world. Every day more and more people are moving here and I have no doubt the trend will continue.

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Newark, NJ: Firstly, kudos on the redevelopment designs; it looks to be a vibrant, inviting and appealing public space which any city would welcome and enjoy. My question is two-fold: What will current area residents quality of life be during construction i.e. will steps be taken to minimize disruption of their daily lives be it excessive noise/traffic and/or loss of local services/retail shops? And, will these current residents experience direct economic and educational benefits sooner rather than later? Thank you.

Monty Hoffman: Thanks for the kind words...we are very excited about the project as well! We have reached out to nearly all of the stakeholders along the waterfront to better understand their needs as we embark on this development. Of course, some inconvenience is unavoidable. We are experienced at working in living, breathing, DC neighborhoods. We intend to take great measures to minimize any disruption during construction.

As for the sooner/later part of your question, we will create 3000 construction jobs on this project and an additional 1300 permanent jobs.

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Washington, D.C.: Mr. Washington: Is there room left in the plan for a streetcar system to connect the SW waterfront to SE waterfront?

Mr. Hoffman: How has the slowing D.C. condo market affected the outlook of the SW waterfront?

Monty Hoffman: The long-term growth projections for DC are tremendous. What we are experiencing today is the ebb and flow adjustment of the real estate market. Current supply of new condominiums has come to a halt. Meanwhile, jobs are still being created hence the demand for housing will grow. As for the SW waterfront, we will be working on planning and design for the next 2 and 1/2 years. By that time we project the housing market will be very healthy.

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Washington, DC: There is a Council Hearing about the transfer of Southwest Waterfront properties over to AWC tomorrow. The Bill which is expected to be executed seems to expedite the transfer but doesn't not take into account the land resources it would be stripping NCRC/RLARC off?

My question is why is AWC supporting the execution of this Bill when in my mind both the NCRC and AWC are incorporated to supr economic development in the city? I believe that in the power play between the two organizations the residents and the city on the whole is at a loss?

As a good citizen and long time resident of DC why don't you look at the long term gain of the city and do what's right with respect to the transfer?

Adrian Washington: We are supporting the bill because the transfer of the SW Waterfront has been hung up for more than two years. the original legislation mandating the transfer is hopelessly flawed -- it's a bureaucratic's delight. The residents of SW and DC as a whole dont want to wait any longer. Without the new legislation this project will continue to be stalled. The Hoffman/Struever team is on board now and is ready to get going right now.

The new legislation will not hurt NCRC at all. First of all, NCRC has a billion dollar portolio, with many large important projects like Waterside Mall and Skyland shopping center still in the works. It has a $150 million line of credit from Morgan Stanley. Secondly, the new legislation transfers McMillan Resevoir, a 25 acre site in NW, immediately. Finally, to the extent that the Council feels that NCRC needs more assets to fullfill it's mission it can simply amend the legislation or pass new legislation to give it to them. The important thing is to untangle the transfer of SW and McMillan from the other things which AWC and NCRC have no control over.

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Washington dc: I've heard that a DC organization would like to build a tall ship called the "Spirit of Enterprise" based on a ship that fought in the war of 1812. Is this project included in your plan?

Monty Hoffman: This is true, the National Maritime Heritage Foundation will build a replica of the Enterprise at the waterfront. Additionally, Living Classrooms intends to replicate The Pearl, a historic schooner of enormous cultural significance to the District. These are exciting educational and cultural components of our plan.

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SW Washington, DC: How many parking spaces are in your SW Waterfront plans? The place gets pretty crowded on weekends as it is now, and you could expect plenty more with redevelopment. You can't expect everyone to take the Metro or Circulator.

Monty Hoffman: While we have not reached the stage of designing the traffic and parking plan, our development team includes national leaders in parking design and implementation. Together, we will develop a feasible strategy minimizing any logistical impact on the surrounding communities. One exciting prospect is a water-taxi service connecting the Southwest Waterfront with the new baseball stadium, Old Town Alexandria, Georgetown and other destinations.

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Washington, D.C.: How far along are the plans for the other side of the Anacostia? It seems like when you say re-development of the Anacostia waterfront you are referring to mostly SW, and not SE.

Adrian Washington: We are very committed to the development of both sides of the river. SW Waterfront and Baseball are both moving ahead full speed but we are actively working on plans for Poplar Point, Parkside and the Anacostia Metro Station. I invite you to visit our web site or come to one of our public meetings to learn more. In fact we are doing a site tour of Poplar Point this weekend.

A key goal of AWC is to move resources from the redevelopment of valuable sites like SW Waterfront over the river to prime the redevelopment of east of the river sites. That is why we are so anxious to get going on SW Waterfront -- delays here will delay our east of the river projects.

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Washington D.C., SW : How are you looking at the marina situation? As a sailboat owner and former president of a SW Waterfront Association, I am concerned when I see artists renderings of a bridge to Haines Point. This would effectively close off the existing marinas to all but small boats.

Monty Hoffman: We have no intention of building a bridge to Haines Point. That was part of a competitor's plan.

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Chicago, IL: The Washington Post 9/29/2006 article "Developers Selected to Transform Southwest Waterfront" notes that some of the residential units will be for moderate- and low-income families. Is the mix percentage dictated by local ordinances or will the mix be determined by the developer or some other entity?

washingtonpost.com: Developers Selected to Transform Southwest Waterfront

Adrian Washington:

We are very proud of the high levels of affordable housing we will be producing on the site. These levels are mandated by AWC's enabling legislation. Beyond that though we were quite pleased with the way the Hoffman-Struever team was able to fully integrate these components throughout the site to create a true mixed-income neighborhood.

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SW Wash: Thanks for the chat! As a SWDC resident I'm thrilled that PN Hoffman was selected for the development. Many of us are looking forward to living in a more vibrant waterfront neighborhood.

Will the new architecture blend with the '60s modern buildings that currently exist in SWDC? Many of us love our Condon & Lethbridge and Goodman homes. It would be a shame to put in buildings similar to the style of the Clarendon development, or the style of the new townhouses on 7th and G SW. What sort of character do you envision for this part of the neighborhood?

Monty Hoffman: First, we plan to bring the neighborhood to the water. Currently there are 22 miles of waterfront yet not one true DC waterfront neighborhood. We envision a world-class waterfront neighborhood. To make it authentic we will break down the massing to a human scale. Authentic neighborhoods are diverse and organic in nature. It WILL NOT be a cookie-cutter, mass development.

But this is about more than bricks and mortar. There will be untold economic and social benefits to the neighborhood and the city:

-3000 new construction jobs

-1300 permanent jobs

-290 affordable housing units

-14 acres of parks and recreational areas

-new cultural and educational programming

-28 million in annual tax revenue

-opportunities for LSDBE businesses

and much more

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Monty Hoffman: Thanks so much for the stimulating conversation. We enjoyed the questions.

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Adrian Washington: Thanks from here as well. We look forward to continuing this dialouge as we move forward with this and other AWC projects.

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