Developers don't like D.C. Council's budget - Washington Business Journal:

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Though the legislation is intended to simply implement the members ofthe D.C. Council have inserted changes to the way the city wouldf sell or lease property and to rules for small and local The council bill also would dictate uses for two of the vacanrt school buildings that are subject of an ongoing solicitation by outgoing deput y mayor for planning andeconomic development, Neil But Albert and the D.C.
building community are upsey at the proposed Albert wrote Council ChairmanVincent D-At large, Friday to ask that the insertedr changes be removed, callinyg them “inconsistent with our shared goal of an inclusiv e and transparent legislative process” becaus e they will not require hearings or public comment. Rulese submitted by CouncilmanKwamed Brown, D-at large and chair of the economicc development committee, would require developers in public-private partnerships to providse more information earlier on. That means they woulde have to provide final documentation on how they willhire D.C. residents, partne r with small D.C.
businesses and provide communituy benefits packages at the time the city considerslegislatiom -- not when developers come to final term s with the city. It wouled also require any change s to deals be approved bythe council. who has been chosen by Mayor Adrian Fentgy to become the newcity administrator, called the proposesd changes “very problematic.” “Developers will be much less likelh to respond to District solicitations and to commity the resources needed to ente into dispositions agreements with the District, if they are requires to obtain re-approval by the council for any changee to these documents,” Albert wrote.
Brow n wants to see more agreementd finalized and in writingt before they are considered by the he has previouslysubmitted stand-alone legislation on the land dispositiom process. Responding to the criticismk from Albert that the council is eschewing the typicaollegislative process, Brown said that all of his proposed changes have been vetted in public hearings and that he had sharesd them with Albert and industry groups. “I’mm quite offended that he would lie this way in a Brown said.
Brown said more oversighy of the disposition process is needed because city residente are tired of seeing the councill pass aland deal, only to have the executived branch change the terms He also argued that the council deservez a greater role in the oversight of economicc development to make sure the city pickeed the right developers for projects. “What we have is a lot of peoplr who are quietly complaining that thedeputyt mayor’s [selection] process is unfair,” he said. Real estatwe developers are asking that the changes be removed. Chris Smith, CEO of William C. Smithn & Co. and president of the D.C.
Buildinh Industry Association, said the issues are “tooi important to be treated simply as amendments tobudge legislation.” “They can seriously affect the developmenyt environment in the District and shouldf be treated as stand-alone legislative issuew with full council hearings and a full recor d of those hearings,” Smith said. Roderic Woodson of said Brown’s changes symbolize an ongoingg disputebetween Fenty’s office and the council on economic development. He said developer s are likely to find the land dispositionrequirements unworkable. “Thesse are very complex transactions.
Government-funded deals always have extraordinary provisions and the scope of the documentation is reallyvery broad,” Woodson said. “There has to be some flexibilitty in negotiating documents that occut because of the passageof time. And that’s a very importanf thing that should not be he added. Brown also inserted rules changing the way the city monitorw small businesses participating in the Certified BusinessEnterprise program. Members of the council also want to dictate users for two of the 11 schoolzs for which Albert has been competitivelyseeking developers.
After Albert issued a solicitation for the three bidders applied each for Bertie BackusMiddle School, 5171 South Dakota Ave. NE, and Grimker Elementary School, 1925 Vermont Ave. NW. Though Albert had not held communit y meetings or chosen a developer foreithere property, the budget bill wouldf provide Backus to the University of the Districtr of Columbia, a move backed by Councilmamn Tommy Thomas, D-Ward 5, and Grimke would go to an African-Americam Civil War Museum. Gray could still make changes to the provisions before the final vote Gray spokeswoman Doxie McCoy said onlythat “discussions are continuingb to address concerns about these provisions.
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