Poplar Point RFEI Draws Seven Proposals

As many have been following the recent stories regarding the fate of one of DC’s last 100+ acre sites, Poplar Point may not turn out the way many had originally thought. For three years now the owner of DC United, Victor MacFarlane, and city officials have been negotiating the price the owner would have to contribute to develop the site DC United’s new stadium. At least until Fenty. Months ago, when Fenty and MacFarlane were unable to come to common terms as to the cash input MacFarlane would need to contribute to develop the site, Fenty publicly announced his intent to allow other developers the opportunity to submit their proposals for what they would do with the prime piece of property. As of this past week we have seven interested parties. According to the Washington Business Journal, those parties are:

• Archstone-Smith, one of the developers of the old convention center site, and D.C.-based Madison Marquette
• Clark Realty Capital, based in Arlington, which has done mixed-use developments at Fort Totten and the Vienna Metro station
• Forrest City Enterprises, based in Cleveland, developer of the Yards in D.C. and other property around the Washington Nationals ballpark
• A three-member team formed by General Growth of Chicago, Mid-City Urban LLC of Silver Spring and Doracon Contracting of Baltimore
• City Interests
• Urban-City Ventures LLC
• Capital Area Regional Center Jobs Fund

As you can see, MacFarlane is not on the list. Now, council member (and former mayor) Marion Barry, wants his voice heard. He feels that the cities long-term negotiations with the team should continue and the new site would be ideal not only for the team but for the economy of Anacostia.

As a result of the RFEI, MacFarlane met with the comptrollers from both Virginia and Maryland in an attempt to find a more suitable site outside the city. No information has risen as to whether or not his plans to leave will continue.

Residents in Anacostia Plead with Mayor Over Controversial Poplar Point

As I returned from my weekend in New York this morning and opened up my feeds, I couldn’t help but see an overwhelming amount of sources repeating the same thing…”Fenty, Keep DC United in DC.” As you may have read in last weeks post, MacFarlane, the owner of DC United, is now considering taking his team (and the tax revenue generated by the team) outside of District boarders in response to Fenty’s RFEI for Poplar Point. As a result, not only have DC officials responded by promising to find MacFarlane’s team another site in DC but a second coalition of Anacostia are publicly pleading for Fenty to revert back to the original plan to bring DC United to the 110 acre site. Their plead comes with the emphasis on MacFarlane’s involvement with the community and the immediate areas overall economic growth.

As quoted from a Washington Post article:

“D.C. United has been in the community for quite a while now working with the community,” said Sandra Seegars, an advisory neighborhood commissioner in Ward 8. “The new mayor comes in and takes us back to step one. We don’t need to start over again.”

Under MacFarlane’s plan, total development would reach 8.5 million square feet — twice the amount of space envisioned by the Anacostia Waterfront Corp. MacFarlane offered to pay for the stadium, expected to cost from $150 million to $200 million, if the city would contribute $350 million in infrastructure for the development project.”

Maryland Welcomes DC United

Less than a week after MacFarlane originally announced his intentions for seeking a new home for DC United outside the boundaries of D.C. the Maryland Comptroller responds by welcoming MacFarlane’s initiative and aiding however possible.

Just yesterday DC United owner Victor MacFarlane and team president Kevin Payne met with MD comptroller Peter Franchot expressing one anothers interests. The meeting comes amongst the severing of ties between Mayor Fenty representing Poplar Point and the owner over. The disagreement began when Fenty required MacFarlane to contribute $200 million to the Poplar Point development but MacFarlane was unwilling to offer more than $150 million…hardly a difference worth noting in the scheme of both the multi-billion dollar project nor the net worth of the billionaire. Since the dispute, Fenty published a request for expressions of interest (RFEI) from global developers with experience in waterfront development. The proposals are due this Friday, October 19th.

In spite of the meeting with the MD Comptroller, DC officials promptly responded by publicly stating their intentions to find a new home for the team within the limits of the city, a feat hardly worth believing…that is unless they can find 13 contiguous acres needed for the stadium site (or call on Douglas Jemal who to my research may be the single largest private landholder in the city).

MacFarlane has not responded to the cities efforts nor his intention to stay in the city.

Poplar Point Coalition Created Saturday as Opposition to Fenty Grows

Ward 8 Council members Marion Barry and Yvette Alexander announced the creation of the Poplar Point Coalition yesterday, just days before the RFEI’s are due from developers for the development of the 130 acre site known as Poplar Point. The announcement comes as tension has been building between the DC United owner, Victor MacFarlane, former DC Mayor Marion Barry, and with not only the city government but most notably with Mayor Fenty. Several months ago a disagreement between Fenty and MacFarlane led the mayor to announce the opening for bidding from developers for the site despite years of negotiations between MacFarlane, Barry and Fenty.

Now MacFarlane has taken the opposition to another level by announcing his intent to begin looking for possible stadium sites outside the city boundaries, an act that is nothing short of explicit defiance. It seems as though the creation of the coalition yesterday comes just days short of the deadline for RFEI proposals (Oct 19th) and MacFarlane’s new site search, possibly to hasten the parting of ways for MacFarlane and DC.

MacFarlane & Payne Stand Up to Fenty: Poplar Point or No DC

Just yesterday Victor MacFarlane, owner of DC United, and team President Kevin Payne finally took a stand against recent rival Mayor Fenty. According to a press release, MacFarlane and Payne have officially announced their intent to take DC United’s stadium outside of the DC line if Poplar Point negotiations are not reinstated, thereby requesting 13 acres of the 130 acre site for the stadium and a negotiated lease for RFK Stadium. This release marks the first opposition to Fenty’s recent [request for expressions of interest] for the site since Marion Barry was noted stating that he would in no way support anything but DC United. The RFEI originally intended to create competition among global developers with interest. The RFEI’s are due October 19th, 2007.
According to the Examiner, MacFarlane and Payne wrote“However, given the uncertainty around the [request for expressions of interest], the unhurried pace of the negotiations with the federal government on the land transfer, and the fact that our current situation is not financially feasible, we have begun discussions with surrounding jurisdictions about alternative stadium sites.”

For a background on the site see:
I stand corrected, DC puts out RFEI on Poplar Point
Barry Shuns Fenty in Rejection for Poplar Point Bid by MacFarlane

New Report shows DC United may not be headed to Poplar Point, my sources say otherwise

According to an article published today by NBC4.com, the DC United stadium, originally headed for the 110 acre lot in Poplar Point, may be in a state of scrutiny. According to my original research (and unreleased sources) Poplar point had gotten the contract to be developed. See my previous blog here.
As of yesterday, this may not be the case. Yesterday Fenty publicly released that they are seeking alternative development proposals for the same lot. Why the cause for Fenty’s change of mind? What else but MONEY?!?!?!?

The owner of DC United is only willing to pay $150 Million but the city wants $200 Million for the lot now that the city has realized the potential of profitability. The city wants to initiate a publicly available competitive bidding process for what many would consider one of DC’s last & most valuable assets.

Mayor Fenty Announces Development Partner for Former McMillan Sand Filtration Site

Mayor Adrian M. Fenty today announced Vision McMillan Partners will serve as the District’s development partner in redeveloping the 25-acre former McMillan Reservoir Sand Filtration Site at North Capitol Street and Michigan Avenue, NW.

“We have an incredible asset in the McMillan site, but it’s been fenced-off for decades,” Fenty said. “It is time to put this land back into productive use and we’re partnering with a highly capable team that can do just that.”

Vision McMillan was selected among five bidders by the National Capital Revitalization Corp., which is currently being folded into the District’s Office of the Deputy Mayor for Planning and Economic Development (DMPED). The team is led by EYA, a Washington-area developer who is currently leading the redevelopment of the 25-acre Hyattsville Arts District and the 30-acre National Park Seminary. Other members of the team include the Alexander Cos., a development firm nationally renowned for historic preservation projects; MacFarlane Partners, one of the largest African-American-owned real estate investors in the country; the Jair Lynch Cos.; StreetSense; Smoot Construction; and Urban Services Systems.

“We are honored to be selected by the District for a project of this importance. EYA and our team members have a true passion for and deep expertise in completing challenging, urban projects”, said President of EYA Robert Youngentob. “We look forward to working with the District and the community to create a vibrant new neighborhood that respects the site’s history, furthers economic development, and enhances quality of life for District residents.”

The McMillan site is expected to be redeveloped into a mixed-use project that could include residential, retail, office and park space, but there is no current development plan for the site. The project will include affordable housing and 35 percent of the local contracting opportunities must go to certified local, small and disadvantaged businesses (LSDBEs). More than half of all new jobs created must be offered to District residents and at least 20 percent of the equity used to finance the project must come from LSDBEs as well.

Mayor Fenty Pledges 10,000 Units of Affordable Housing

Released this past week was Fenty’s affordable housing resolution for the crisis ensuing in the market segment. His intention is to ensure that citizens of all income levels are able to afford to live in the city.

The goals of the new initiative is to create an additional 5,000 new units of affordable housing for ownership and maintain an additional 5,000 homes in areas where priced have dramatically increased over the past few years.

Additionally, Fenty is committing over $117 Million to these initiatives on an annual basis to pay for the protection and growth of affordable housing growth. With government owned land the government plans on ensuring that 30% of developed properties be utilized for affordable housing when the rest of the property will be utilized for market value sale.

As many of you may know one of the most secure market segments I foresee over the next two years is this market. I have been utilizing equations that can return 25-35% for available land with 90 accuracy. You may have read in previous posts that the fastest moving market in my experience is the $450,000 and under market.

If you or anyone you know is looking to develop in real estate and feel that returns like this are considerable enough for you to consider please contact me at the information above.