Officials Assail Funding Cuts
Local Leaders Suspect Politics Played a Role in Decision

By Lyndsey Layton
Washington Post Staff Writer
Thursday, June 15, 2006; Page B06

Elected leaders from across the region suggested yesterday that the Department of Homeland Security was playing politics when it opted to slash money to the Washington area by 40 percent while increasing payments to cities such as Omaha and Louisville.

"This was not meant to be any old pork barrel, where it's given out and spread all around," DC Council member Carol Schwartz (R-At Large) told other officials at a meeting of the Metropolitan Washington Council of Governments. "That is not the intent of homeland security funds."

The remarks reflect a growing exasperation among local officials with the secretive process that DHS used to divide $711 million in 2006 anti-terror funding for urban areas. Initially, local officials had seemed bewildered by the loss of funds. Yesterday, the tone grew sharper and more accusatory. Although no evidence was offered to show that politics was behind the cut, Schwartz and others readily expressed suspicions.

http://www.washingtonpost.com/wp-dyn/content/article/2006/06/14/AR2006061402181.html

DC Petition Drive For Slots on Ballot Allowed to Proceed

By Robert E. Pierre
Washington Post Staff Writer
Thursday, June 15, 2006; Page B02

The DC Board of Elections cleared the way yesterday for canvassers to begin collecting signatures for a proposed ballot initiative to bring slot machines to the District.

City leaders and community activists had sought to stop the drive before it started, with action such as a lawsuit arguing that legalizing slots is not a proper subject for an initiative in the District. But with the approval of petitions, residents could start getting requests to sign their names to support slot machines any day now.

The goal is to get the initiative on the November ballot.

A political action committee, financed by offshore gambling promoters, was stymied in its effort to bring legalized gambling to the District two years ago because of widespread election law violations, including fraud, that led the board to levy a $622,000 fine against the committee, the largest in the elections board's history.

http://www.washingtonpost.com/wp-dyn/content/article/2006/06/14/AR2006061402215.html

 

Cropp's Gay Support Surprises Insiders

By Lori Montgomery and Elissa Silverman
Washington Post Staff Writers
Thursday, June 15, 2006; Page DZ02

Council member Adrian M. Fenty's remarkable surge in campaign donations this week overshadowed an equally remarkable accomplishment by his chief rival for the Democratic mayoral nomination, Council Chairman Linda W. Cropp.

On Monday night, Cropp trounced Fenty in a survey of about 170 members of the Gertrude Stein Democratic Club, the oldest and most influential political organization representing the city's gay community.

During the first round of voting, Cropp nearly won the 60 percent necessary for endorsement, getting 103 votes (58 percent) to Fenty's 39 (22 percent). In a runoff, Cropp snared 106 votes, sewing up the group's support. Fenty got 41 votes (24 percent), while 24 people voted to issue no endorsement at all.

http://www.washingtonpost.com/wp-dyn/content/article/2006/06/14/AR2006061400903.html

 

Residents, Interest Groups Comment on Building Blueprint

By Nikita Stewart
Washington Post Staff Writer
Wednesday, June 14, 2006; Page B01

DC residents had one last chance yesterday to tell planning officials how to shape the city's comprehensive plan before the proposal goes to the DC Council later this summer.

Residents and special interest groups attended a public hearing about the draft plan that will guide where the District should build housing, schools, transportation and parks during the next two decades.

Unlike the city's last two comprehensive plans, the proposal has requirements mandating that the plan be used as the city's master development design, said Dwight Kirk, a planning office media consultant. As a result, groups advocating smart growth and affordable housing have lobbied the city's planning office to have their priorities reflected in the 500-page document.

http://www.washingtonpost.com/wp-dyn/content/article/2006/06/13/AR2006061301567.html

 

Vocal Critic Of Mayor Leads in Fundraising

By Lori Montgomery and Nikita Stewart
Washington Post Staff Writers
Tuesday, June 13, 2006; Page B04

DC Council member Adrian M. Fenty raised nearly $636,000 for his mayoral campaign over the past three months, outperforming Council Chairman Linda W. Cropp, despite her endorsement from Mayor Anthony A. Williams, according to campaign finance reports filed yesterday.

Williams's support for Cropp, declared at a May 16 news conference, had been expected to help the council chairman consolidate fundraising in the city's business community, where Williams is popular. But Cropp's report to the DC Office of Campaign Finance shows her raising nearly $436,000 during the reporting period that began March 10, compared with $500,000 in her March report.

Fenty, who has been one of the mayor's harshest critics, meanwhile saw a surge in donations that propelled him into the lead in the race for cash, with $1.76 million. As the campaign enters the final three months before the Sept. 12 primary, the five major Democratic candidates together have raised more than $4.5 million, making the 2006 campaign the most expensive by far in city history.

http://www.washingtonpost.com/wp-dyn/content/article/2006/06/12/AR2006061201660.html

 

Open Seats Bring Vigor to Races for the DC Council

By Elissa Silverman and Nikita Stewart
Washington Post Staff Writers
Sunday, June 11, 2006; Page C01

With four DC Council seats up for grabs, including the chairman's spot, the September primary is shaping up to be one of the city's most competitive elections in nearly two decades.

Three council members are seeking higher offices and one is retiring, drawing hopefuls to the election who do not have to face the deep pockets of an incumbent. Because there are no runoffs in District elections, victory is possible with a small but reliable group of supporters.

The majority of the 42 declared candidates as of Thursday were Democrats seeking to become their party's nominees for the November general election. Ward candidates must get the signatures of 250 voters of the same party and ward on nominating petitions by July 5. For the chairman and at-large races, candidates must collect 2,000 signatures of voters of the same party.

http://www.washingtonpost.com/wp-dyn/content/article/2006/06/10/AR2006061000808.html

 

Southeast Housing Demand Grows

WASHINGTON, DC-Development in southeast Washington continues at a rapid pace fueled by the recently approved Washington National's $611-million baseball stadium currently under way and, more recently, Anacostia Waterfront projects. The common denominator to all these largely, mixed-use initiatives is a push to provide housing to as wide a variety of income levels as possible.

"There is a tremendous need for affordable housing in the Greater Washington DC area," Ryan Sfreddo, senior vice president of CharterMac Capital, a subsidiary of CharterMac tells GlobeSt.com. "It is a situation worsened by annual cost of living increases, which he says are more than 20% over the national average in the city."

Earlier this month, CharterMac announced it has provided over $19 million in debt and equity financing to William C. Smith & Co Inc. and East of the River Community Development Corporation for the revitalization of a 257-unit affordable housing property in the southeast section of Washington, DC. The complex, Southview Apartments, includes plans to expand to 1,500-units. Other plans are centered around the 110,000 sf Town Hall Education Arts and Recreation Campus. It is the third Washington area affordable housing initiative CharterMac has partnered with Smith, Sfreddo says.

http://www.globest.com/news/592_592/washington/146604-1.html

 

AWC Narrows Bids to Five Teams

WASHINGTON, DC-The Anacostia Waterfront Corp. has selected five development teams out of 17 original bidders for further consideration to redevelop 47 acres of publicly owned land along the Southwest Waterfront slated to be transferred to AWC. The Request for Expressions of Interest was issued by AWC with a May 1, 2006 submission deadline.

The short-list of developers consists of: EastBanc-LNR Waterfront Partners; Madison Marquette/KSI Waterfront Partners; PN Hoffman/Streuver Brothers Eccles & Rouse; SW Waterfront LLC; and the John Buck Co. The Southwest Waterfront Small Area Plan, developed as part of the Anacostia Waterfront Initiative, calls for the creation of an urban mixed-use neighborhood with residential housing, 14 acres of parks and open space and an expanded riverfront anchored by public plazas that provide access to the water. For previous coverage, click here.

"We plan to move expeditiously to complete the selection process so that the transformation of the Southwest Waterfront can begin," says Adrian Washington, president and CEO of AWC. It is anticipated that the final selection process will be completed by the end of summer.

http://www.globest.com/news/591_591/washington/146585-1.html

 

DC Commercial Markets Leads Nation

WASHINGTON, DC-The area's commercial real estate market is performing better than most, Lawrence Yun, senior economist with the National Association of Realtors, tells GlobeSt.com. The NAR just published its latest outlook, reporting that, overall, fundamentals are improving with tightening vacancies. "The DC area's vacancy rates are lower than the national average and rent growth is anticipated to be somewhat stronger than the national average," he says, "in large part due to the fact that the DC region created more jobs in the past five years than any other metro market."

In the office sector, the latest vacancy rate in Q1 was 8.9% here. NAR anticipates a decline to 8.4% by year end. For multifamily, the vacancy rate is 2.9%, which is very tight for the area. "One reason is that the strong run up in residential home prices here has been such that many people cannot afford to buy a home anymore," Yun says. Vacancy rates in rentals are anticipated to decline by 2.7% by year end in the DC area, while rents are projected to rise by 4.7%.

Rising energy costs and rising interest rates, though, may temper these projections, Yun adds. These factors have the potential to limit growth throughout most major markets in the US, including the DC area. "We already anticipate that the economy will be subpar over the next couple of quarters but if energy prices continue to rise and interest rates get out of hand then our projections could be more pessimistic."

http://www.globest.com/news/590_590/washington/146559-1.html

 

JV Identifies $800M in Development Projects

WASHINGTON, DC-The National Capital Revitalization Corp. and Morgan Stanley Real Estate's MSREF US have entered into a three-year, $150-million public-private equity partnership. The JV will develop properties and assets NCRC owns throughout the district. NCRC expects that the investment will yield between $700 million to $800 million in total investments including debt.

There are three projects initially targeted by the partnership. The first will be Skyland, an 18-acre site in Southeast Washington that is currently a hodge-podge of 1950s-era vintage strip malls that has had about 16 different owners and 40 different tenants over the years. The redevelopment of this area, estimated to be roughly $200 million, will likely have a strong retail focus. NCRC development executive Kevin Warner tells GlobeSt.com that there is a potential for major anchors to be included in the project. "Across the street is a Safeway-anchored retail center that is one of the best producing in the area."

http://www.globest.com/news/588_588/washington/146534-1.html

 

Approvals Spark $2B in Development

WASHINGTON, DC-Marriot International Inc., RLJ WCC Hotel LLC and Forest City Washington are among the beneficiaries of new legislation just passed by the city council here. The council has passed three pieces of legislation that will spur some $2 billion in private development and bolster revitalization efforts in the Anacostia riverfront area of southeast Washington, DC.

These are the New Convention Center Hotel Omnibus Financing and Development Act; the Payment in Lieu of Taxes Revenue Bonds Southeast Federal Center Project Approval Resolution; and the Payment in Lieu of Taxes Revenue Bonds the Department of Transportation Project Approval Resolution. The New Convention Center Hotel legislation provides financing for the construction and development of a $550-million Convention Center Headquarters Hotel, through the issuance of up to $175 million in Tax Increment Financing bonds. Marriot International and RLJ WCC will receive up to $135 million net TIF bond proceeds to develop a 1,434-room convention center hotel.

The other two bills authorize $230 million in Pilot bond issuances to finance or reimburse Forest City Washington for $88 million in infrastructure costs related to the Southeast Federal Center Development and to provide infrastructure funds for Anacostia Waterfront Initiative projects. Forest City’s proposal for a $1.5-billion Southeast Federal Center mixed-use community calls for 2,700 units of residential housing, 1.8 million sf of office space, up to 400,000 sf of retail and cultural amenities, a new park and riverfront esplanade and other infrastructure -–totaling 5.3 million sf of new development.

http://www.globest.com/news/586_586/washington/146494-1.html

REGIONAL NEWS

Making a Case for Moving With the Job

By Dina ElBoghdady
Washington Post Staff Writer
Thursday, June 15, 2006; Page HO04

For thousands of people whose jobs are to be relocated to Fort George G. Meade in Anne Arundel County as part of the most recent round of military base consolidations, the big question has been: Move with the job or quit?

Last week, the Defense Information Systems Agency launched its first official push to get its 4,000-plus workers to move from their Northern Virginia offices and homes to Maryland.

Most of those workers are civilian employees who do not have to go where the military asks them to. At a daylong information fair hosted by the agency Friday, officials from Howard, Anne Arundel, Baltimore and Prince George's counties made a pitch to workers about moving, bombarding them with information on schools, recreation and housing in the area.

http://www.washingtonpost.com/wp-dyn/content/article/2006/06/14/AR2006061401104.html

 

House, Senate bring the thunder in lightning round
Electric-rate plan in governor's hands

Friday, June 16, 2006

ANNAPOLIS - Gov. Robert L. Ehrlich Jr. will convene a hearing next week to debate the merits of the General Assembly’s electricity rate relief plan, which is certain to face his veto.

Thursday's announcement shows Ehrlich is trying to rewrite a script familiar since his election in 2002 where Democratic leaders cast aside the Republican governor’s policy objections and overturned his vetoes easily.

This time, Ehrlich appears to be ratcheting up the effort to have the veto sustained, forcing the General Assembly into changing its rate plan.

http://www.gazette.net/stories/061606/polia%20s195005_31944.shtml

 

Democrats Clash Over Road Project
O'Malley's Commitment Challenged by Duncan

By John Wagner
Washington Post Staff Writer
Thursday, June 15, 2006; Page B02

Montgomery County Executive Douglas M. Duncan yesterday questioned Baltimore Mayor Martin O'Malley's commitment to building the intercounty connector, a top transportation priority for many suburban business leaders and residents.

During a candidates forum featuring the two Democrats running for governor, O'Malley said, "We need to move forward on the ICC," a six-lane, 18-mile highway that will connect Interstates 270 and 95. But he expressed concerns about plans for tolls on the road.

Duncan, however, pointed to testimony O'Malley gave in 2003 against a financing plan for the highway.

http://www.washingtonpost.com/wp-dyn/content/article/2006/06/14/AR2006061402297.html

 

Ehrlich Unhappy With Bill Slowing Utility Hikes
Md. Governor Seeks 'Better Deal'; Stops Short of Veto Threat

By John Wagner, Matthew Mosk and Ann E. Marimow
Washington Post Staff Writers
Thursday, June 15, 2006; 11:42 AM

Maryland Gov. Robert L. Ehrlich Jr. (R) today expressed displeasure with a bill aimed at providing relief from sharply rising electricity rates, but he stopped short of saying he would veto it.

Ehrlich made the comments in a radio interview this morning on Baltimore's WBAL after the General Assembly yesterday passed legislation in response to widespread public anger over the soaring rates. The legislation not only would bring consumers short-term relief but would mandate a wholesale restructuring of the way utilities are regulated in Maryland.

"Clearly I don't like what they've done," Ehrlich said in the interview. Lawmakers "need to come back again to get a better deal," he said.

http://www.washingtonpost.com/wp-dyn/content/article/2006/06/15/AR2006061500825.html

Panel Discusses Tysons Segment
Engineering Group Has Closed-Door Meeting on Tunnel Issue

By Alec MacGillis
Washington Post Staff Writer
Thursday, June 8, 2006; Page B03

A panel of engineers started meeting behind closed doors yesterday to come up with recommendations for the state as it tries to decide whether to build the Tysons Corner portion of the Metrorail extension to Dulles International Airport below or above ground.

The American Society of Civil Engineers convened the panel at the request of Virginia Transportation Secretary Pierce R. Homer, who will decide whether to go with a tunnel or an elevated track at Tysons.

The contractors hired for the $4 billion project say a tunnel would cost as much as $800 million more than the aboveground plan. Fairfax County officials, Tysons landowners and some Metro officials say that the estimate is overstated and that it would be worth paying a little extra for a tunnel because it would contribute more to the hoped-for transformation of Tysons into an urban-style hub.

http://www.washingtonpost.com/wp-dyn/content/article/2006/06/07/AR2006060702040.html

 

For Voters, It Often Boiled Down to Electability vs. Allegiance

By Amy Gardner
Washington Post Staff Writer
Wednesday, June 14, 2006; Page B09

For most Northern Virginians voting in yesterday's Democratic primary for the U.S. Senate, the question of whom to support often turned on why they were voting at all.

Those focused on beating incumbent Sen. George Allen in November tended to vote for the eventual winner, James Webb, a combat veteran and Navy secretary under President Ronald Reagan who campaigned primarily on his opposition to the war in Iraq.

Those trying to pick the "better Democrat" -- the candidate they agree with on a broad range of social issues -- more often picked Harris Miller, a former Washington lobbyist and a Democratic Party activist.

http://www.washingtonpost.com/wp-dyn/content/article/2006/06/13/AR2006061301646.html

 

Leaders Say Budget Deal Appears Near
Funding for Roads Is Still Unsettled As Talks Continue

By Rosalind S. Helderman
Washington Post Staff Writer
Tuesday, June 13, 2006; Page B01

RICHMOND, June 12 -- Virginia lawmakers reported encouraging progress Monday in their efforts to agree on a state budget before the end of the fiscal year June 30.

The 11 delegates and senators appointed to negotiate the budget worked steadily through the weekend, coming to informal agreement on billions in state spending in several major areas, including public safety and state building projects.

With the deadline looming for adopting a budget or risking a potential government shutdown, they said they planned to continue work Tuesday and could produce a final budget deal to put to a vote of their chambers by the end of the week.

http://www.washingtonpost.com/wp-dyn/content/article/2006/06/12/AR2006061201502.html

 

Counties Lay Out Budget Contingency Plans

By Amy Gardner
Washington Post Staff Writer
Tuesday, June 13, 2006; Page B01

Even as Virginia lawmakers said they are making progress on finishing the state budget, local government officials in Northern Virginia are beginning to plan for the impact of a government shutdown on a variety of city and county services, including courts, sheriff's offices, health clinics and schools.

Few officials have given up hope that General Assembly budget writers will reach a last-minute agreement to enact a state spending plan by July 1 or that Gov. Timothy M. Kaine (D) will invoke executive powers to keep government running even without a budget in place.

But some local officials are leaving nothing to chance as the start of the new fiscal year looms. The state sends hundreds of millions of dollars to local governments each year for education, law enforcement, mental health care and other programs. Virginia also spends hundreds of millions more on locally administered state programs such as juvenile court, probation services and immunization clinics.

http://www.washingtonpost.com/wp-dyn/content/article/2006/06/12/AR2006061201560.html

 

Mills Examines Final Bids on Portfolio

ARLINGTON, VA-Today is the final day companies interested in either buying or investing in the Mills Corp., a REIT that controls 42 regional malls. According an SEC filing, it has entered into confidentiality agreements with more than 30 potential buyers and investors. Vornado Realty Trust and the Westfield Group have been mentioned as possible suitors.

The company has been in financial distress since last year. It expects to have to delay as much as a year its Meadowlands Xanadu project in New Jersey, and that the expected yield may be lower than initially anticipated. For previous coverage, click here.

Last month the company received some room to maneuver when it closed on $1.91 billion of a $2.23-billion financing with Goldman Sachs Mortgage Co., with the remainder expected to be closed over the next several months. The majority of the net proceeds were used to pay off its existing line of credit, two corporate-level term loans, the repayment of one recourse construction loan and the acquisition by GSMC of three recourse construction loans. The remaining funds, of approximately $387 million will be used for working capital and general corporate purposes.

http://www.globest.com/news/589_589/washington/146549-1.html

 

Wells Fargo Expands Multifamily Lending

MCLEAN, VA-Wells Fargo & Co signed a definite agreement for Wells Fargo Bank to acquire the assets of locally based Reilly Mortgage Group from a group of investors led by Stonehurst Capital LLC. The privately owned, multifamily real estate finance firm will become part of Wells Fargo Wholesale Banking's Specialized Financial Services Group.

Terms of the agreement were not disclosed. Subject to regulatory approval, the acquisition is expected to close in the third quarter of 2006.

Ed Blakey, head of Wells Fargo's Commercial Mortgage Group, tells GlobeSt.com that the acquisition will allow Wells Fargo to move beyond the short-term, floating-rate, construction-oriented multifamily financing that it has mainly provided up until now. "Wells Fargo does about $35 billon in commercial real estate financing, including multi family production." But of that amount, multifamily consists of only $3.5 billion to $4 billion. To expand into permanent debt products, he says, an institution would need a fully dedicated team to have a material impact. "Most of our people are generalists."

http://www.globest.com/news/583_583/washington/146446-1.html