Email Campaign For Balducci’s (Dare We Say It’s The Last?)

this will NOT happen. sorry to burst your bubble.

Please explain the 5 year requirement for the developer that has just expired. Is the developer required to put in a store? What happens if they don’t? What did they get in exchange for this requirement?

ed: The requirement that the developer put a grocer in that space expired shortly after Balducci’s pulled out of their lease 3 years ago. Since the space wasn’t leased out to any non-grocer, the developer was not in violation of the agreement. In fact, the space has already changed hands from JPI to Douglas Development.

I’m not completely clear on all of the details, but the original developer agreed to lease to a grocer in exchange for some allowance (I’m not sure if it was a building density allowance or if they were given some gov’t owned land on that site).

money: Why do you say that? Staples was definitely going to be moving into that space until the Balducci’s deal was revived.

#2, ed – this link explains the Jefferson’s project history: http://tinyurl.com/5er4fh

GSA owned the land. (anyone see a few similarities with the Old Post Office???)

my recollection is that the 5 year grocer use requirement was designed to subsidize/encourage a grocer’s coming downtown making it more attractive for people to live downtown. people came downtown anyway although there’s no way to know how many would not have done so if they knew a grocer wasn’t coming. water under the bridge now.

renactment of the TIF package for 90 days demonstrates the city’s and a certain large developer’s committment and interest.

I walk on 7th Street almost every day of the year and there is much more foot traffic now than there ever was in 2005 when the hype to move downtown was in full effect. prepared foods and ready-to-go items would fly off the shelf both day (tourists & workers) and night (residents & Verizon Center visitors) if it fronted this most heavily walked street. residents & workers would pick up the raw foods too. it is such a lay up now compared to 2005. the Balducci’s in Wesley Heights is not a large store so store size clearly is not an issue – they need to hear the downtown anecdotes and stories.

we’ll see what happens in the next 3 months!

Am I the only one that is a little annoyed to have to beg these folks to come in to the neighborhood? I’m sure they’ve done the research. Penn Quarter would be a gold mine for a grocery store. There’s no other store in the area really within walking distance. The area is filled with condos and apartments whose residents would be all too willing to buy their products. Come on in Balduccis, we’re waiting with our wallets. But if not, let’s get someone else already. What about Trader Joes?

I’d also add I now believe both a larger urban style CityVista Safeway (50K+ ft2) on 5th and a smaller Balducci’s-like market (20K+ ft2) on 7th can coexist. the store sizes are significantly different and their customer draw is far enough apart to not overlap to the point of unprofitability. tourists and Verizon Center patrons won’t be heading up to 5th and K. I did not hold this opinion in 2005.

Logan Circle residents had to do some asking to get the Whole Foods on 14th and P, if I remember correctly.

from the 2001 Washington Post:
The company [Fresh Fields] began eyeing a site on the corner of V and 13th streets NW. But when a group of Logan Circle citizens — white Victorian home rehabbers — learned of Fresh Fields’ interest, they launched a campaign to persuade the company to consider P Street instead. The group produced a 52-page demographic study that showed the 1997 market price of a home within half a mile of the P Street site was $342,000. It flooded Whole Foods’ headquarters in Austin, Tex., with more than 3,000 written pleas.

It’s not just residents who would benefit, but workers too. We moved 300 employees here about 7 months ago, and in the first month I had to explain a dozen times that the Waterfront Safeway is the closet grocer until the CityVista one is built. And I can’t tell you how disappointed everyone was. I can tell you that with a grocer, local delis and restaurants will lose out because workers will be stocking groceries in their office fridges.

CityVista Safeway’s entrance will be at 5th & L Street – one block further if that makes a difference =)

I think that Penn Quarter can support both grocers if Balducci focuses on prepared foods, meats and fresh produce (which they will). That’s the kind of stuff people would ideally want to stop off after work for.

The company I work for provides data and analysis tools to retailers to aid site location decisions. If Balducci management is like many grocers they probably aren’t thrilled that the 1mi radius circle a site tool would draw around this site includes mostly the mall and federal office buildings to the south. But, hey, if it were surrounded by dense residential on all sides then a bigger name grocer would have already swooped in. So they should look at the positives. The space is a good fit and many PQ residents and workers have high incomes and will pay extra for convenience.

Obviously there is a “market” for a market. But we don’t know the rent that Jemal is demanding? This is the biggest issue. The taxpayers should not have to subsidize inflated leases with TIF financing.

I am not a big Jemal fan, but on this one I think he seems to be doing the right thing. I had read (or maybe heard) somewhere that the rent they were discussing with Balducci’s was 50% less than what Staples was willing to pay.

This is the whole problem with DC’s secretive government & the TIF program – nobody knows what is truly happening except for the “public servants” & the developers. Developers get taxpayer money, but it’s secret. People were told moving into the Clara Barton & other condos that a grocery store would be in that spot, then the taxpayer money is taken by one developer who skips away. Now a second developer is given more taxpayer money – & if he gets a grocery store in there, fine; if not, he too skips away with the taxpayers’ money.
The whole system is corrupt. It’s not capitalism; it’s not socialism; it’s cronyism – the disease that’s been plaguing the District for eons & continues nonstop under the current mayor.

Again, no one knows what they are talking about. Staples never had a chance at moving into that site. Where do you all get your info? Also, e-mailing the CEO of Balducci’s isn’t going to help, only piss them off…..

Randy: Staples had an approved permit from the HPRB to put their signage on the storefront. I’d say that’s pretty solid evidence that they were going to move in. If you have additional info, please share.

The neighborhood response to the possibility that Balducci/s is seriously focused on finishing it build-out and opening in their original space in Jefferson Square (7th Street between D and E) has been great. Some thoughts in response to the comments on the blog.

1. Douglas Jemal lives downtown and like other downtown residents, appreciates the lack of a grocery store and after his purchase from the original developer of Jefferson Square, he committed to trying to find a grocer. The neighborhood helped with a market survey and an online petition effort. He was not successful in an effort to bring in Whole Foods and eventually decided on Staples at a market rent of $50. When he learned that Balducci’s was again expanding, he approached them and offered $25 rent.
2. The amendment to the Downtown TIF bill was requested by the Mayor and sponsored by CM Jack Evans, CM Tommy Wells, and Council Chair Vincent Gray. The Downtown Neighborhood Association actively supported this amendment when it went to CM Jack Evans Finance Committee and sent notes to other council asking for support of this bill when it went before the Council. This bill provides a 90 day window for Balducci to commit and get funding through bonds that are paid off with Tax Increment Funding. The Mayors office of Economic Development and Planning determined that these bonds would be self financing with no taxpayer subsidy required. For those who do not believe in TIF funding, this is how Gallery Place was funded and they payback has been stronger than anticipated.
3. The reason we have a location designed for a grocery store is because it was part of the requirement for the winning BID to get the block from the Federal Government. It was recognized that there was a need. The original requirement included a major rent reduction in order to attract a grocer. However, it was not a forever agreement. If the developer was unable to get a grocer within (I believe) three years, they could seek other tenants. When Balducci originally signed, that met the developer’s requirement.
4. Balducci’s already has their permits and just needs to finish the build out. If they move forward, we could have a new grocery in 60 to 90 days.
5. While some emails may be on the level of begging, most have been thoughtful notes stressing the need of a grocer and the strength of the market. And besides, begging is not so bad.

Freddie: TIF financing does not use any existing taxpayer dollars. Except for the cost of administering the program and a portion of the incremented tax revenue off a higher tax base, the taxes from the higher tax base go straight back to the city. Eventually the financing bond gets paid off and the city gets 100% of the higher tax base which does benefit the people (we hope!).

TIFs encourage development that otherwise would not have taken place, would have taken forever or taken place in an uncoordinated way. It’s a financing tool used all over the United States.

As for how the $ number gets set between the city and a developer, I agree that that process is not transparent.

This is the first that I’ve heard that Jeaml lives downtown. What building exactly? When did he move here?

All others, you’re really willing to pay more for everything at a Balcucis’s other than get quality food at a huge Safeway just blocks away? Really? Your going to put your money where your mouth is? Seriously doubt it. You’ll abandon these guys quciker than you can say “specials on beef this Friday.”

Balcucis’s would be stupid to come in here. Stupid is as stupid does.

#17 – Anon – fortunately for downtown commerce, it’s not as simple as “Safeway costs less than Balducci’s.” a retailer offering prepared foods of any kind will get some business on lower 7th Street because of the location. if they offer unprepared foods, that’s great too.

would I pay 50 cents to $1 more if all I need is one gallon of milk and it saves me from walking 1.5 miles? you betcha. in fact, I already do thanks to the CVS.

would an E Street office worker navigate their way to 5th and L for a roast beef sandwich to save $2 when they have a few other errands to do on their lunch break? not likely.

would a family preparing a full meal for six check out the Safeway? probably.

retail is all about drawing the right mix of customers which is why both stores are now doable.

Right on, pqresident! Saying Balducci’s won’t survive because there’s a Safeway in Mt. Vernon Triangle is like saying Cowgirl Creamery won’t survive because you can get parmesan product in a green can at CVS.

I plan on shopping at both Balducci’s and Safeway. I don’t think many people will be doing all of their groceries at Balducci’s, and I’m pretty sure that’s not their business model. Balducci’s will be many things to many people (a place to get wine, a place to pick up lunch, a place to get items you forgot to pick up at Safeway, a place to get ingredients for a really nice meal).

We also have to remember, this Balducci’s will draw people from all over the District. Stores like Balducci’s and Dean & Deluca are usually located in inconvenient places for most people. This one will be smack in the middle of every metro line and many bus lines.

I have a feeling they’ll be raking money, hand over fist. They’ll wonder why they ever thought twice.

DCDNA,

Do you mean $25/sq ft/month? What is the average commercial rent rate in DC?

#16 – I am excited about the possibility of Balducci’s and support the TIF financing, but I am not sure i agree that there are no costs.

I don’t claim to be an expert on legislative matters such as this, but my gut feeling is that the new business and tax revenue that is generated by the TIF financed project might have been generated on its own by a separate project that the free market demands would have brought in.

Building something where there is nothing (ie baseball stadium, etc) is one thing, but something will eventually will go into that space and generate tax revenue whether its TIF financed or not.

Not saying not to do it, but I do think there are costs.

Are you referring to Balducci’s the pizza chain? Yuck! Why in the world would you want that place to move in? ughghg

#22, Janet – The pizza chain is Bertucci’s. Balducci’s, a specialty grocer, is the subject of the discussion and the retailer residents and workers would like to have in the neighborhood.

You say Bertucci’s, I say Balducci’s, tomato, tomahto, Bertucci’s, Balducci’s, let’s call the whole thing off. Thanks for the laugh.
As for TIF funding, anything that reduces the tax base or gives any favor to anyone based on taxpayer money should be open, pubic information. DC spends far too much helping super-wealthy people like the baseball team owners, money we don’t have, & now they refuse to pay rent.
No payment of rent? Evict them.
It’s just like the Feds – welfare for poor people is out of favor, welfare for billionaires, popular. Everyone should be treated the same: rich, poor, old, young.