[Mintwood-place] Progress Report on the Target Development Columbia Heights

[Jim Graham]

Dear Friends:
 
At the bottom of this message is a progress report prepared at my
request by GRID USA, the developer of the "Target site" at 14th and
Irving and Park. This has been for everyone involved a challenging
effort.
 
As your councilmember, I have been very involved in moving this to
reality. I am not going to add to much to this report now, except to say
that last July I introduced, and the Council passed, a $42 million TIF
to finance the construction of the essential component of a 1000 space
underground garage on this site.
 
Without that funding, we would be nowhere today.
 
I am also posting this full report on my website, where we will
periodically update this important development...indeed, the largest
current development outside of downtown.
 
Please take a moment and send this to others that you feel may be
interested.
 
Bests, Councilmember Jim Graham
 

DC USA Project Status

May 19, 2005

Site Preparation

NCRC is commencing demolition of the remaining buildings on the site,
which were recently vacated. Demolition should be completed by the end
of the summer. The process of relocating existing utilities on the
property has also commenced. Pepco, Verizon, Washington Gas and DC Water
and Sewer have equipment and services that must be relocated prior to
the start of construction. This process is expected to take
approximately 4 months. Additional sub-surface borings are scheduled to
be taken once the buildings have been demolished. This additional
information is required by the geo-technical engineers for final
foundation design as well as for the sheeting and shoring. The sheeting
and shoring requires WMATA approval because of the adjacency of the
building's foundation to the Metro tunnel. Clark Construction, on behalf
of the Developer, is working closely with the utility companies and
WMATA.

Approvals

The alley closing has been completed. BZA has issued its decision to
permit the garage to be reduced to two levels. The structural and
geotechnical engineers are revising the foundation plans for
resubmission to WMATA and for the sheeting and shoring permit. The
building permit application will be submitted in late summer.

Design

The architect has updated the floor plans and building elevations based
on the Office of Planning and DDOT requirements agreed to as part of the
BZA process. A detailed survey of the fa9ade that is being retained on
Irving Street is underway. The mechanical and electrical engineers are
resubmitting service applications to Pepco and Washington Gas based upon
the revised building. The construction document preparation is scheduled
to begin by June 1 and should take approximately 4 months to complete.
The bidding phase will follow the completion of the working drawings and
should take approximately 1 month. Assuming that the financing process
moves along on schedule construction could start by the end of October.

Leasing

In addition to the Target purchase agreement which was signed in 2004
leases are being finalized for approximately 110,000 square feet with
other tenants including Washington Sports Clubs and Bed Bath & Beyond.
Letters of Intent are being finalized for another 120,000 square feet of
space. This would leave approximately 45,000 square feet still available
for rent. In order to expedite the leasing process the Developer has
several law firms working simultaneously to complete tenant leases as
expeditiously as possible. Tenants are working on their preliminary
store layouts and working with the Developer to coordinate their
requirements with the base building design.




Financing

The Developer has negotiated an acceptable term sheet with a leading
commercial bank to finance the entire project. The retail portion will
be financed conventionally and the parking garage through the use of TIP
bonds secured by the tax increment and by parking revenue. The garage
will be owned by a public entity and operated for the benefit of the
retail tenants. The financing documents are extremely complicated and
are scheduled to be completed by early Fall.

Legal

DC USA will be a three unit condominium consisting of the Target Unit,
the Retail Unit and the Garage Unit. Condominium Documents were prepared
by the Developer in January and are currently under review by all
affected parties. The LDA will be amended to reflect the financing and
ownership structure of the garage. The Developer has three different law
firms working on the necessary financing and condominium documents to
help expedite the process.

 
I typically answer emails before 9 AM on weekdays. If you email me after
that, it is likely that you will hear from me the next weekday. If there
is a need to communicate prior to that, you may wish to call me.
 
Jim Graham, Councilmember, Ward One, 1350 Pa. Ave., NW, #105,
Washington, DC 20004. 202-724-8181; 202-724-8109 (fax).
 
Chairman, Committee on Consumer and Regulatory Affairs. Main Committee
Number: 202-724-8198. 1350 Pa. Ave., NW, #112, Washington, DC 20004.
 
Website: www.grahamwone.com
 
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