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June 2, 2006 News Clips

 

WASHINGTON, DC NEWS

Alley Homes Fight for Respect -- and Trash Pickup
Pressure of DC Real Estate Market Inspires Decrepit Buildings' Evolution

By Lyndsey Layton
Washington Post Staff Writer
Monday, May 29, 2006; Page A01

They were once Washington's slums -- crude buildings tucked into alleys across the city where the poor lived in such squalor that Eleanor Roosevelt railed against them and Congress made them illegal.

Generations later, those tenements have central air conditioning, stainless steel appliances, assessed values as high as $500,000 and owners who say alley living is a creative solution to the housing crunch in the nation's capital.

"We're trying to create a safe, healthy, nurturing environment," said David Bernhardt, 34, a carpenter-turned-developer who transformed a derelict brick building in an alley behind H Street NE into a two-story home for himself and his two children.

http://www.washingtonpost.com/wp-dyn/content/article/2006/05/28/AR2006052800886.html

 

 Unions' Endorsement Methods Questioned
Contributions Made Before Members' Votes of Support, Candidate Bolden Says

By Elissa Silverman
Washington Post Staff Writer
Thursday, June 1, 2006; Page B02

A DC Council candidate is questioning top union officials about their endorsement processes, pointing to political contributions made to local candidates by the organizations before official votes of support by rank and file members.

A. Scott Bolden, a lawyer challenging incumbent Phil Mendelson for an at-large seat in the Democratic primary, sent letters last week to the presidents of the Service Employees International Union Maryland/DC State Council and the Hotel & Restaurant Employees Local 25 saying that $1,000 contributions the groups made in March to Mendelson trouble him, given that the unions have not officially backed candidates.

Last week, Bolden said, he was interviewed by representatives from the local service employees union as part of its endorsement selection process and spent many hours responding to the organization's questionnaire. The union, which represents 10,000 DC residents who work in health care and building services as well as in the public sector and nonprofit organizations, and the hotel and restaurant workers group, are seen as key organizations that supply money, volunteers and votes to campaigns.

http://www.washingtonpost.com/wp-dyn/content/article/2006/05/31/AR2006053102343.html

 

Candidates Warned Against Empty Talk

By Lori Montgomery and Nikita Stewart
Washington Post Staff Writers
Thursday, June 1, 2006; Page DZ02

The five Democratic mayoral candidates who vowed to spend an extra $1 billion on affordable housing and youth services without raising taxes had better start digging for change in the sofas at the John A. Wilson Building. The Washington Interfaith Network is prepared to "punish" the next mayor if he or she fails to make good on that promise, perhaps by pushing for a recall election, said lead organizer Martin Trimble.

At an unusual forum last week, council Chairman Linda W. Cropp, council members Adrian M. Fenty (D-Ward 4) and Vincent B. Orange Sr. (D-Ward 5), former Verizon executive Marie C. Johns and lobbyist Michael A. Brown stood before a crowd of more than 800 WIN faithful and agreed to push the group's agenda if elected.

As a nonprofit organization, WIN cannot endorse any candidate. But it can put more than 400 volunteers on the streets in an effort to boost turnout in 45 targeted precincts in the Sept. 12 Democratic primary, a tactic designed to produce a show of political force that would put the next mayor on notice, Trimble said.

http://www.washingtonpost.com/wp-dyn/content/article/2006/05/31/AR2006053100900.html

 

Williams Seeks $53 Million More to Cover Budget Gaps

By Lori Montgomery
Washington Post Staff Writer
Thursday, June 1, 2006; Page B04

Mayor Anthony A. Williams asked the DC Council to approve $53 million in emergency spending yesterday, including $750,000 to create an "Office of Baseball" to oversee ballpark construction and nearly $8 million to cover a massive shortfall at the troubled agency that cares for the mentally and physically disabled.

The request also includes a grab bag of grants, such as $200,000 for the Special Olympics, $750,000 to pay off the mortgage on the National Council of Negro Women headquarters and $2 million to buy routine equipment for Greater Southeast Community Hospital.

And there's an additional $6.8 million for a trouble-plagued new city-run phone system that so far has failed to generate promised savings compared with Verizon.

http://www.washingtonpost.com/wp-dyn/content/article/2006/05/31/AR2006053102191.html

 

Neighborhood Unites in Opposing Shelter
Residents Fear Proposal for NW Homeless Center Will Reduce Home Values

By Paul Schwartzman
Washington Post Staff Writer
Monday, May 29, 2006; Page B01

Cliff Valenti is part of a wave of young professionals migrating to a long-tattered stretch of Northwest Washington. Buddy Moore is among the older homeowners who eyed the newcomers warily, fretting that they would price them out.

Now they have found a common cause, one uniting blacks and whites, renters and owners, plumbers and computer experts: stopping construction of a 170-bed homeless shelter on Georgia Avenue.

After work one night, Valenti, 34, traveled from his job as a software developer to join a cluster demonstrating in front of the site on the edge of the Columbia Heights and Petworth neighborhoods, where Central Union Mission plans to relocate.

http://www.washingtonpost.com/wp-dyn/content/article/2006/05/28/AR2006052801078.html

 

Brokerage Indicator Points to Steady Growth

WASHINGTON, DC-The latest release of the Commercial Leading Indicator for Brokerage Activity points to a net absorption of industrial and office space for the rest of 2006. Published by the National Association of Realtors, the index was at 118.9 during the first quarter, rising .8% from an upwardly revised reading of 118.0 in the fourth quarter.

The index is 2.7% higher than the first quarter of 2005 when it stood at 115.7. The first quarter index marked four straight quarters of growth, with improvement seen in 10 of the last 11 quarters. David Lereah, NAR's chief economist, tells GlobeSt.com that such modest increases are good for the commercial sector. "You don't want overbuilding as we have had in the past."

Net absorption in the office and industrial sectors in the fourth quarter is projected to be 135 to 155 million sf. About $284.5 billion in additional commercial construction is expected in the fourth quarter, an increase of $17.4 billion above the $267.1 billion recorded in the first quarter.

http://www.globest.com/news/564_564/washington/146069-1.html

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REGIONAL NEWS

Market Action Slips Away From Coasts

By Kenneth R. Harney
Saturday, May 27, 2006; Page F01

Could the real estate action be shifting to the heartland, the vast swath of middle America that wasn't really touched by the hyperinflationary housing boom?

That's what a new statistical analysis of housing price cycles in 100 major metropolitan areas suggests could be over the horizon. Its author, Christopher L. Cagan, director of research and analytics for First American Real Estate Solutions, examined historical housing price movements and concluded that metropolitan real estate markets can be classified into three behavioral categories:

· Linear markets, where booms and busts almost never occur. Prices plod along, year in and year out, gaining modestly. Local changes in economic growth may nudge prices up or down, but the moves rarely are dramatic. Much of the American heartland fits into this category. Examples include Columbus, Ohio; Indianapolis; Houston; San Antonio; Memphis; Atlanta; Cincinnati; Des Moines; and Louisville.

http://www.washingtonpost.com/wp-dyn/content/article/2006/05/26/AR2006052600808.html

 

Schemers Beware: The Capital Gains Tax Man Is Not Easily Fooled

By Benny L. Kass
Saturday, May 27, 2006; Page F12

Q: My husband and I have owned our home for more than five years. We purchased it at $460,000, and find its value today is around $960,000, putting us at the $500,000 gain mark. We are not interested in moving to a different home now, but likely will want to sell our home in 15 years when our children are grown and we are getting ready for retirement. I dislike the idea of having to pay taxes on any gain we receive, assuming our selling price in the future will be more than $960,000.

As we understand the law, if we would sell our house today and buy the house next door for $960,000, then in 15 years we would be able to sell that home for at least $1.46 million without having to pay any taxes on the gain. That would allow us to use our $500,000 tax exemption today on this house, then again on the future home, in effect getting $1 million of gain tax-free. If, however, we do not move and we sell our current home in 15 years for $1.46 million, assuming the tax law does not change, we would owe capital gains tax on $500,000 of our $1 million gain.

Could we sell our current home to my parents for $960,000, report the $500,000 gain as tax-free, then a week (or month) later, purchase the home back from them for $960,000? Then in 15 years when we sell, our basis in the home would be $960,000, ensuring that a selling price of $1.46 million would give us another $500,000 of gain tax-free? The only downside I see to doing this is the costs associated with the paperwork (mortgages, etc). Does anything in the law prevent this transaction, and what are your thoughts?

http://www.washingtonpost.com/wp-dyn/content/article/2006/05/26/AR2006052600807.html

 

Slates taking shape in House races
Newcomers hope tying their fortunes to incumbents will provide electoral lift

Thursday, June 1, 2006

Candidates for open seats in this year?s House of Delegates races are trying to cozy up to their incumbent counterparts, hoping the records of sitting officials will lend credibility to their campaigns.

"That's what everybody?s angling for, obviously - getting on those tickets," said Adrion Howell, the county executive's county council liaison.

So far, three seats are likely to open up in the House this fall.

http://www.gazette.net/stories/060106/princou201709_31939.shtml

 

Facing the edge of voters' anger
Politicians get an earful from their constituents in person

Friday, June 2, 2006

ANNAPOLIS - If the 72 percent electricity rate increase for BGE customers is a political monster this election season, House Speaker Michael E. Busch went into the belly of the beast Wednesday night.

Busch walked the streets, knocked on doors and talked to voters in East Port, the eclectic former fishing village near downtown Annapolis.

Going door-to-door in Baltimore city and its suburban counties -- like Anne Arundel County where Busch represents the Annapolis area -- is a risky proposition for incumbents these days. There have been widespread reports of friendly faced politicians greeted with slammed doors, cold shoulders and sharp tongues as incumbents canvass neighborhoods in their bids for re-election. All because of the impending electric rate hike.

The General Assembly left town in April with no resolution to the spike that will hit approximately 1 million BGE customers in a month. The weeks following the session have done little to produce consensus or relief for angry ratepayers.

http://www.gazette.net/stories/060206/polia%20s193414_31957.shtml

 

Steele Absent From Bush GOP Fundraiser
Whether Unpopular President Will Hurt Md. GOP in Question

By Matthew Mosk
Washington Post Staff Writer
Thursday, June 1, 2006; Page B05

President Bush shuttled into Maryland last night to help the state Republican Party raise more than $1 million for a number of high-profile 2006 races, but only one of the state's two marquee Republican candidates joined him.

Gov. Robert L. Ehrlich Jr. stood on a riser shoulder to shoulder with the president, but the party's leading candidate for an open U.S. Senate seat in Maryland, Lt. Gov. Michael S. Steele, was absent. Steele had a scheduling conflict, campaign spokesman Doug Heye said.

In a speech to 300 Ehrlich loyalists, Bush focused on what he said were the high points of the governor's first term, including initiatives to promote charter schools and the health of the Chesapeake Bay.

 http://www.washingtonpost.com/wp-dyn/content/article/2006/05/31/AR2006053102213.html

 

2 Sides Hammer Ehrlich On Guns
Middle Path Leaves Each Bloc Angry

By Fredrick Kunkle and Matthew Mosk
Washington Post Staff Writers
Tuesday, May 30, 2006; Page B01

The Maryland governor's race has hardly begun, and Gov. Robert L. Ehrlich Jr. is under fire for his stance on guns -- from both sides.

In the past few weeks, Democrats and advocates of stricter gun laws have portrayed the Republican as a friend to gun owners, dating to his 1996 vote as a congressman to repeal the federal ban on assault weapons. Two years ago, they say, Ehrlich worked behind the scenes to block a similar assault weapons bill in the Maryland General Assembly.

But plenty of gun owners say that although Ehrlich's almost four years as governor have represented a welcome breather from the kind of aggressive gun control initiatives enacted by a succession of Democratic governors, they have been disappointed because he has not done more for them.

http://www.washingtonpost.com/wp-dyn/content/article/2006/05/29/AR2006052901033.html

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MONTGOMERY COUNTY NEWS

Stuck at a Crossroads Is Par for the Course
Annual County Report Lists Most-Congested Intersections

By Aruna Jain
Washington Post Staff Writer
Thursday, June 1, 2006; Page GZ16

It's no surprise to office manager Sherry Kogok that the intersection of Forest Glen Road and Georgia Avenue in Silver Spring, near the ramps to the Capital Beltway, is ranked as Montgomery County's most congested intersection during peak rush hours.

"I believe it," she said from her office building, which is adjacent to the intersection. "I look out there every day."

Then she paused for a moment. "First of all, whoever designed that stupid thing where you lose the right lane off the Beltway -- it's a dumb setup," she said hotly, referring to the lane that leads north from the Beltway on Georgia Avenue.

http://www.washingtonpost.com/wp-dyn/content/article/2006/05/31/AR2006053101258.html

 

O'Malley Takes Race To Duncan's Home Turf
Baltimore Mayor Shifts Spotlight

By John Wagner
Washington Post Staff Writer
Wednesday, May 31, 2006; Page B02

A Maryland Democratic primary for governor that has been dominated by debate over Baltimore issues is rapidly spreading to a second front: Montgomery County.

That is in part because of fallout from Douglas M. Duncan's return last week of campaign contributions linked to disgraced lobbyist Jack Abramoff, a story that has given new ammunition to critics who say the county executive is too cozy with special interests, including developers.

But it also reflects a strategic move by the campaign of Baltimore Mayor Martin O'Malley. After months of largely ignoring his rival, O'Malley has decided to spotlight problems facing Duncan's jurisdiction.

http://www.washingtonpost.com/wp-dyn/content/article/2006/05/30/AR2006053001282.html

 

Prosecutor Announces Bid to Replace Gansler
Democrat Has Been Deputy Since 1996

By Steve Vogel
Washington Post Staff Writer
Wednesday, May 31, 2006; Page B05

John McCarthy, the longtime deputy state's attorney for Montgomery County, announced his candidacy yesterday to become the county's top prosecutor.

McCarthy, a county prosecutor since 1982, is seeking the Democratic nomination to succeed State's Attorney Douglas F. Gansler (D), who is running for Maryland attorney general.

At his noontime announcement in Rockville, McCarthy highlighted his community ties, including work as a teacher at Good Counsel High School, a law professor at Montgomery College and a basketball coach in Montgomery County youth programs. His audience at the rally included law enforcement officials, defense lawyers, local politicians, former students and family members.

http://www.washingtonpost.com/wp-dyn/content/article/2006/05/30/AR2006053001197.html

 

Intercounty Connector Gets Final Approval
After More Than 50 Years, Work on Montgomery-Pr. George's Link to Start in Fall

By Steven Ginsberg and Matthew Mosk
Washington Post Staff Writers
Wednesday, May 31, 2006; Page A01

Maryland Gov. Robert L. Ehrlich Jr. stood on a patch of roadside grass yesterday to announce that the intercounty connector, a suburban highway more than a half-century in the making, has gained final approval from the federal government and that construction would begin in the fall on the ground beneath his feet.

The approval means that Maryland has satisfied all environmental, economic and community requirements and that it can build the highway across Montgomery and Prince George's counties. State officials plan to finish the project by 2010.

The only remaining obstacle is a potential lawsuit by project opponents, who said they were unsure whether they would pursue legal action. State officials expressed confidence that the highway will be built -- and soon.

http://www.washingtonpost.com/wp-dyn/content/article/2006/05/30/AR2006053000634.html

 

ICC could take candidates in either direction

Friday, June 2, 2006

With a ceremonial mulching of a single tree, Gov. Robert L. Ehrlich Jr. on Tuesday made good on a promise made four years ago to break the political gridlock over the Intercounty Connector and start building the highway before fall 2006.

But if he thought 18 miles of asphalt would be his EZPass to re-election, one pollster is saying the governor might want to plan alternate routes to a second term.

Although surveys show majorities support the ICC, the surveys also show an underlying skepticism that a $2.4 billion project like that is going to make a difference in congested highways, said Steve Raabe, principal at OpinionWorks in Annapolis.

http://www.gazette.net/stories/060206/polia%20s193412_31954.shtml

 

Leventhal takes on immigration and his critics

Friday, June 2, 2006

On Tuesday morning, Montgomery County Council President George L. Leventhal heard his name on the radio and called in to respond.

Leventhal's name was being bandied about by WMAL radio (630 AM) host Chris Core and his listeners on the subject of illegal immigration, and the callers were angry.

The discussion stemmed from an e-mail Leventhal (D-At large) of Takoma Park sent in response to questions on immigration. The e-mail says that Core and CNN?s Lou Dobbs have found that the issue "inflames and excites their audiences and elevates their Nielsen and Arbitron ratings."

http://www.gazette.net/stories/060206/polia%20s193426_31963.shtml

 

Field of 14 meets deadline to apply for Montgomery?s top planning post
A decision is expected within five or six weeks

Friday, June 2, 2006

The Montgomery County Council is likely to appoint a new Planning Board chairman within five or six weeks, council President George L. Leventhal said Tuesday.

If the council keeps to that schedule, Chairman Derick P. Berlage, who withdrew his bid for reappointment earlier this month, would stay in place only a few weeks after his term expires June 14.

The council will conduct public interviews for Berlage?s replacement, said Leventhal (D-At large) of Takoma Park.

http://www.gazette.net/stories/060206/polia%20s193431_31968.shtml

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