“We recognize that we're new to the neighborhood, so we go in with our eyes and ears open,” says Chris Donatelli, whose company Donatelli Development and partner Blue Skye Construction were recently selected to develop five acres of District land at Minnesota Avenue and Benning Road. The “Phase II” project will create a $108 million mix of residential and retail at the Minnesota Avenue Metro station adjacent to the Department of Employment Services building (“Phase I”).

“Now that we are the successful bidder – and there are no more distractions, trying to compare plans,” Donatelli said following the award, “we hope everyone will be focused on working with the existing plan.”

Vocal proponents of the competing proposal have, in fact, “extended an olive branch,” suggesting ways both developers could work together and with the community. But concerns persist as District, developer and community attempt to envision a vacant lot as a core element in a new, “Downtown Ward 7.”

An ‘Early’ Disagreement
Donatelli brings Metro-centered development experience but is new to Ward 7. Blue Skye's work has been visible east of the river but does not occasion large-scale community process. And with the District hosting only one community presentation during the request for proposal (RFP) process, the Donatelli team remained relative strangers to the ward even as the award was announced.

City Interests, the final Phase II competitor, was known in Ward 7 through Parkside and East River Park developments.

In addition, a number of ward businesses and supporters were included in their proposal, making it familiar to many.

The deputy mayor's office does not encourage community participation by bidders during a solicitation process, however, says spokesman Sean Madigan. Adhering to District process, Donatelli's team first met the community during a Sept. 10 District-sponsored meeting.

“Our specialty is to get engaged with the community early,” Chris Donatelli said that night. As community members grumbled, “This is first time we've seen these people,” a disagreement on what constitutes “early” engagement became apparent. Moreover, City East's “development vision” cited Ward 7 public policy initiatives and provided site-specific diagrams, while Donatelli's displayed a single building with ambiguous context.

“We were looking for something showing the distinctiveness of this community,” Wanda Aikens, of the Ward 7 Arts Collaborative, initially a City East supporter, said later. “There was no distinguishing fact, nothing that placed their proposal in Ward 7.”

Aikens and others will be looking for the project to emphasize the history and culture of the ward.

RFP and Response
“That [Development Vision] illustration could have been identified better,” Donatelli said later, adding that details will be clarified – and “shifted slightly” based on feedback – as the team, including architects, meets with the community.

Donatelli's proposal includes 40,000 square feet of retail space, 2,500 square feet of community space and a 5,000-square-foot retail incubator. The housing component includes 375 “affordable” rental units and 60 market-rate homeownership units (see below). No office space is included.

Much of this – “even the unit count” – can change, Donatelli says, as the team consults with DDOT and others.

Housing: A Happy Medium?
The RFP included a preference for 30 percent affordable housing, half for those earning up to 30 percent AMI (Area Median Income) and half for those making 30-60 percent AMI. Donatelli puts all rental units in the latter category, with none specified for the former – disappointing affordable housing advocates – and none planned for higher-earning renters, alarming those seeking higher end retail; homeownership is planned for incomes at 80 percent AMI.

“This was supposed to be mixed income – affordable and market rate – so that we can attract retail to the area,” says Hillcrest's Paul Savage. “But the project was downgraded … the District is not delivering for Ward 7.”

“It is very disconcerting that the city would provide these targets then award the project to a developer who did not follow those guidelines,” says Cheryl Cort, policy director for Coalition for Smarter Growth and member of the advisory committee for the Deanwood Small Area Plan.

Sylvia Brown of the Deanwood Civic Association (initially supporting City Interests) believes the 18 months prior to groundbreaking will bring market changes, permitting a project “less apprehensive” than the current proposal.

If, moving forward, the community and the District agree to a different housing mix, Donatelli says, “We'll explore that. This is a public-private partnership.”

Noting Donatelli's flexibility, Dennis Chestnut, another initial supporter of City Interests, calls for “pressure on the city, to be sure they follow up and find a happy medium for all of us. We have to live with this.”

Great Streets: Who Will Build It?
Among RFP recommendations is creation of a new road off the Benning Road viaduct, providing access to the new development while reducing traffic at Minnesota Avenue.

“This new road is very important to traffic – bicycles, motorists and pedestrians – and is part of the Great Streets plan,” Cort explains.

“We definitely need to include streetscape in the planning for the project,” says Ward 7 Councilmember Yvette Alexander, adding that she would “expect the plan to lean on public dollars,” for any road.

By including the road in their proposal, Cort adds, City Interests was addressing an important public good. In response to queries about tax increment financing (TIF), City Interests demonstrated no need for TIF aside from the road. Deputy Mayor Neil Albert stressed that this was not part of their “best and final offer.” Meanwhile, “no subsidy” was cited as a great strength of the Donatelli proposal, which ignored the road.

At press time, Donatelli had scheduled a meeting with DDOT to discuss this and other issues.

Moving Forward
Mayor Adrian Fenty promised at the award announcement that the community process would begin “right now.” Madigan says the “usual procedure is for the District to bring the developer out to the community once the award is announced,” but project manager Ayris Scales said the District would not initiate further meetings.

At press time, Donatelli was meeting with Alexander who plans “to facilitate a meeting of the minds, focusing on an optimal outcome for new Downtown Ward 7.”

Brown notes the importance of consistency across the new Downtown and of cooperation between developers and across the community. Julius Ware, president of the Ward 7 Business and Professional Association, wants to see cooperation toward a Community Benefits Agreement with “clearly defined deliverables.” He also believes it's important to “aggressively lobby for Ward 7 businesses and contractors.” ANC 7D Chair Dorothy Douglas stresses timely communication and transparency.

There is “a whole lot of work to do,” says Cort, “both to fulfill the original RFP and to provide legitimate public benefits,” in exchange for land which was obtained by the District for a public project.