This was originally posted to the Adams Morgan Listserv on March 5, 2019, as message #50672, groups.yahoo.com/neo/groups/AdamsMorgan/conversations/messages/50672
The Mayor of our city recently called for the development of 36,000 new housing units by 2025 <dcist.com/story/19/01/07/bowser-sets-an-aggressive-goal-for-building-new-housing-36000-units-by-2025/> to keep up with regional job growth. The call asks for all DC neighborhoods to do their part in this effort. Implied in this call is a heavy reliance on firms such as Donatelli Development. Therefore, a solid understanding of the track record of Donatelli Development in our neighborhoods will give us insight into the likely results of this 36,000 call, if we continue with our current approach.
Since about 2005 I’ve chronicled how Donatelli Development through a series of public-private partnerships with our government has help to systematically gut equitable development policies and efforts in our city exacerbating racial inequities and our housing crisis. In the place of equitable development, Donatelli has modeled an economic development regime (gentrification) rooted in the systematic exploitation of racial privilege and historic inequities. I raise this today because soon policy makers will amend the city’s Comprehensive Plan laws, goals and policies which will guide our city’s development for the next 20 to 30 years, including the goal of 36,000 new units. Donatelli is important, because the amendments as proposed by the City’s Office of Planning and now before the City Council for approval would enshrine the Donatellism as the new foundation for the City’s Comprehensive Plan.
If we follow the work and examples of Donatelli Development in partnership with our city, we will see how adopting Donatellism will gut the current Comp Plan’s fragile equitable development policies, goals and re-enshrine racial inequity as the core of our development policies for the next 20 to 30 years. It is my goal to enlist residents and other stakeholders in a Fight Against this effort to enshrine Donatellism into our Comprehensive Plan, housing policies and to Fight For Equitable Development. But as we do, to educate ourselves by studying the Donatelli example to decode the smoke and mirror, fake news and revisionism we are going to get from some policy makers and advocates we clamor for 36,000 new units.
I’ve listed below shows projects awarded through the city and Metro (WMATA) to Donatelli Development over the last 20 years, 13 projects in 4 tranches, accounting for approximately 2,648 units. Most of the projects proposed or received zoning relief in order to increase housing density, none were challenged by appeals, most received discounted land or public subsidies. Most with affordable housing requirements above IZ levels. In many ways the Donatellism represented by these projects equates to the so called “Smart Growth” in neighborhoods and the City’s call for 36,000 new units is all about. We need only evaluate these tranches as I have to give an idea of what the 36,000 is likely to produce. Again, I propose that an honest review will show that equates Donatellism to exacerbating Racial Inequity in neighborhood economic development. And the city’s lack of commitment to Racial Equity.
Donatelli Development Projects
1998/99 Tranche
Harrison Square <www.washingtonpost.com/archive/business/2000/03/20/big-money-in-small-spaces/496816f0-f7d9-4f8f-bdb5-9181e2678005/?utm_term=.4aa8b2151346> U Street Metro, 98 towns, award 1998, completed 2002 (RLA)
Ellington U Street <thehill.com/homenews/news/10300-the-ellington-defying-the-stylistic-establishment> Metro, awarded <2001, 190 apts, completed 2004 (WMATA)
2002/04 Tranche
Park Place GA/Pet Metro, 161apts, awarded 2002(04), completed 2009 (DMPED/WMATA)
Kenyon Square CH Metro, awarded 2004(02), 153 condos, completed 2007 (DMPED)
Highland Park I CH Metro, 229 apts, awarded 2004(02), completed 2009 (DMPED)
Highland Park II CH Metro, 144 apts, awarded 2004(02), completed 2013 (DMPED)
2008 Tranche
Ball Park Chiller, 84 apts, awarded 2008, returned 2010 (WMATA)
Park 7 MINN. Ave Metro, 377 apts, awarded 2008, completed 2014 (DMPED/WMATA)
3825 Georgia GA/Pet Metro, 32 apts, awarded 2008, completed 2017 (DMPED)
Griffin GA/Pet Metro, 49 apts, acquired 2009, completed 2011
2014/15 Bowser Tranche (Mayor, Chair Council Economic Development & Metro Board)
Hill East Metro, 344 apts, awarded 2014, construction begins 2018 (DMPED)
Capitol Heights Metro <www.bizjournals.com/washington/breaking_ground/2014/08/metro-receives-just-two-bids-for-development.html>, 480 apts, awarded 2014, returned/completed??? (WMATA)
WMATA Fort Totten, 345 residential units, awarded 2015, returned 2018 (WMATA)
A quick look at the 2014/15 Bowser Tranche indicates likely big trouble for the 36K effort based in Donatellism. The Bowser Tranche started with 1,169 units in hands in Donatelli Development. Of these units only 345 or 30% will likely make it to market anytime soon. In 2018 after sitting on the project for 3 years Donatelli returned the Totten Project, 345 units or 30% and Capitol Heights 480 units about 40% can’t affirm any status, except the project is not listed on the Donatelli website as complete nor under construction. Donatelli Development is not your average developer but a key DMPED and WMATA partner with a 70% failure rate. And even the “successful” project, Hill East, is at least 2 years behind schedule and restructured the project to segregate the “market” project for the “affordable” project into separate buildings. And we are to trust 36K units to this approach?
On a related note, at the recent City Council Oversight Hearing for DMPED, CM McDuffie asked Deputy Mayor Kenner about the city’s commitment to Racial Equity in light of the push for 36K new housing units. Kenner’s response <dc.granicus.com/MediaPlayer.php?view_id=2&clip_id=4896> (4:12:47) was at best an “artful avoidance” of the question. However about a 30% ish commitment to equity inline with the performance of the Boswer Tranche in producing housing units.
Over the next several weeks, we will hear a lot about the challenge of building 36,000 new units a by 2025 as the most important challenge before the city. And that these 36,000 units are necessary to achieving affordable housing goals. I suggest this is not the real challenge. The real challenge is can we achieve these and other goals without exacerbating racial inequities. If we continue Donatellism the research will tell us, the answer is NO. However, according to the Deputy Mayor we don’t intend to measure Racial Equity in these and other efforts, so we can just make it and claim success. As of now, I suggest if we understand the history of Donatelli Development and the dynamics round Racial Inequities in the neighborhoods in which they have operated, we will have our answer. But let’s at least study the example.
William
Some Sources
In the case of Harrison Square, the builders came in after the developer and the city had negotiated the terms of the development, and affordable housing was not required.
www.washingtonpost.com/archive/business/2000/03/20/big-money-in-small-spaces/496816f0-f7d9-4f8f-bdb5-9181e2678005/?utm_term=.4aa8b2151346
The term “gentrification” has been prominent in the lexicon of the District, which has experienced increases in property values of 400 percent as a result of urban development projects, according to Scott Pomeroy, who works with the MidCity Business Association.
However, Donatelli asserts that the Ellington proved that the U Street corridor could support market-rate development, which resulted in additional projects and the construction of units for affordable-housing set-asides. (2006)
thehill.com/homenews/news/10300-the-ellington-defying-the-stylistic-establishment
Seven years later, Bowser still relies on Fenty’s network. Her fundraising base is full of folks like developers Chris Donatelli and John Akridge, lobbyist Max Brown, and businessman Ben Soto—the same crew who bankrolled Fenty’s rise. Who’s on her political team? Campaign chair Bill Lightfoot, adviser David Jannarone, and activist Terry Lynch—all of whom helped elevate Fenty from hyperactive DC Council backbencher to domineering mayor.
www.washingtonian.com/2014/09/24/muriel-bowser-is-no-adrian-fenty/
Audit of the Affordable Housing Mandates for Development Projects Formerly Managed by the Dissolved National Capital Revitalization Corporation and Anacostia Waterfront Corporation
Published March 21, 2013
dcauditor.org/report/audit-of-the-affordable-housing-mandates-for-development-projects-formerly-managed-by-the-dissolved-national-capital-revitalization-corporation-and-anacostia-waterfront-corpora…
D.C. Auditor Wants District’s Real Estate Documents
legaltimes.typepad.com/blt/2009/09/dc-auditor-wants-districts-real-estate-documents.html
DC Should Invest in Good Jobs, Not Economic Development Warfare
www.dcfpi.org/wp-content/uploads/2018/12/12.12.18-Chemonics-blog.pdf
FY 2017 Unified Economic Development Report
cfo.dc.gov/node/1310196
Investigation of the Florida Avenue Joint Development Project
www.documentcloud.org/documents/461354-wmata-board-report-on-jim-graham.html
Committee on Business & Economic Development, Performance Oversight Hearing, Kenyan R. McDuffie, Chairperson (4:12:47)
dc.granicus.com/MediaPlayer.php?view_id=2&clip_id=4896