Fort Totten Square Walmart is officially open

Mayor Muriel Bowser, Ward 4 Councilmember Brandon Todd, FTSQ Walmart store manager Paul Hill cut the ribbon to officially open the Walmart at Fort Totten Square. Photo courtesy Gwen Cofield, Co-Chair of Lamond-Riggs Development Task Force

Mayor Muriel Bowser, Ward 4 Councilmember Brandon Todd, and Walmart store manager Paul Hill cut the ribbon to officially open the Walmart at Fort Totten Square. Photo courtesy Gwen Cofield, Co-Chair of the Lamond-Riggs Development Task Force

On October 28, 2015, Mayor Bowser and Ward 4 Councilmember Brandon Todd joined a number of Walmart representatives in cheering “Jobs!” as they cut the ribbon to officially open the Walmart at Fort Totten Square (310 Riggs Road NE). Festivities began early at 7:00 am. Led by store manager Paul Hill, the grand opening celebration was filled with music, speeches, and Walmart cheers. There were some consistent themes–affordable retail, jobs, keeping tax money in DC–in everyone’s remarks.

Mayor Muriel Bowser spoke of the long history of the project, which incidentally tracks her public service career in DC. A resident in the neighborhood, the mayor served as an advisory neighborhood commissioner and with a number of other residents created the Lamond-Riggs Development Task Force. As we all know, Bowser went on to become councilmember for ward 4 and eventually mayor. The task force with the Lamond-Riggs Citizens Association (LRCA) worked to develop the Riggs Road and South Dakota Avenue small area plan. That plan created the blueprint for development in the neighborhood. The mayor noted the impetus for the plan was the desire for high quality services and amenities in the neighborhood. She highlighted the reconfiguration of the South Dakota Avenue and Riggs Road intersection that eliminated the fly-bys as the start of creating an urban square, one in which people can walk to dining and shopping. The mayor gave a nod to Walmart’s movement towards increasing wages. She turned what is often a criticism–the fact that there are now two Walmarts 1.5 miles from each other in ward 4–into a positive by saying that means there are 600 people working in the ward at those two stores.

The mayor acknowledged that there is still some work to do on the South Dakota Avenue-Riggs Road intersection that the city spent almost $10 million to reconfigure. DDOT is working on a long-term engineering solution. In the interim, there are traffic control officers at the intersection. They will be there everyday during rush hour, 7:00 am-9:30 am and 4:00 pm-6:30 pm, to direct the flow of traffic and make sure drivers do not block the box.

Councilmember Todd echoed many of the mayor’s remarks. He too acknowledged the efforts of the LRCA and the task force in advocating for development reflective and inclusive of all residents. Giving a shout out to his former boss, he said Mayor Bowser’s efforts to secure funding to reconfigure the South Dakota Avenue-Riggs Road intersection when she served on the council literally paved the way for this moment. He also celebrated keeping tax money in DC and noted there are over 100 Ward 4 residents working in the store.

The pharmacy manager of the store is one of those ward 4 residents. Repeating the theme of affordable retail options, the pharmacy manager said Walmart is proud to provide savings on generic prescription drugs. The store will be administering 300 flu shots to the first 300 customers who request a flu shot at the pharmacy. (It is completely possible that by the time this post is published, the free flu shots will be gone). The pharmacy is also offering free blood pressure screenings.  On October 31, the store will be teaming up with its nonprofit partner Mary’s Center to provide a dental clinic for residents.

Anthony Greenberg, principal of The JBG Companies, the developer of Fort Totten Square, called Fort Totten Square transformative for the neighborhood and noted that it would not have happened without Walmart’s early commitment to not just building a store, but one in a vertical alignment mixed-use development. He mentioned the second phase of the project, stating that his company wishes to continue smart and responsible development with that project.

Walmart’s regional manager spoke briefly about how the store will stimulate DC’s economy and provide affordable products. He reiterated Walmart’s commitment to giving back and hiring DC residents. He noted that nearly 75% of Walmart’s management started off as hourly workers.

At almost 120,000 square feet, the store is the largest Walmart built so far in DC. It has a sizable grocery component, around 50,000 square feet, which is about the size of typical grocery store. Operating hours are 6:00 am-midnight. The store has 24 hour security and there is free underground parking. During the first few weeks that the store is open, if there are products you would like the store to carry or have other suggestions or complaints, just let the store manager Paul Hill know.

 

 

 

 

 

Fort Totten Square: Walmart opening 10/28/15 & other updates

Phase I: Fort Totten Square

FTSQ Walmart grand opening

Lots of people have asked and now we know the Fort Totten Square Walmart will have its grand opening on October 28, 2015. Operating hours will be 6:00 am to 12:00 midnight.

FTSQ retail pic

As for the other retailers, Subway and Five Guys have signed leases. Subway’s signs are up. Five Guys is waiting for permits from DCRA. At last week’s LRCA meeting, the developers announced they are in negotiation to fill the two remaining retail spaces. Pending successful negotiation, the space on the corner of 3rd Street and Riggs Road NE will be a new “restaurant” concept by a local owner. Restaurant is in quotation marks because it will not be a sit-down restaurant exactly, but there may be tables outside. They have not publicly revealed what the new concept is, but they did say we are sort of a test market for the concept.

The other space, which will be between Subway and Five Guys, on the corner of Chillum Place and Riggs Road NE will be a non-restaurant use. They declined to elaborate what that use will be, but they made a previous announcement, so make of that what you will.

Phase II: Townhomes and retail

Surplus property site

Phase II site

In previous posts, we mentioned there is a second phase to the project, which will be located across the street from the first phase. The developers and District officials are still negotiating the purchase of District-owned land adjacent to land already owned by the developers on the southeastern corner of South Dakota Avenue at Riggs Road NE. The District-owned land has to go through the public disposition process.

Originally the plan for the combined parcels was for more rental apartments with retail. The plan was changed to approximately 160 to 170 for-sale townhomes and roughly 27,000 square feet of retail because the developers now believe the market favors for-sale homes over more rental units in the neighborhood. One reader asked how they could possibly fit that many homes on the property. The answer is that the current conceptual plan calls for approximately 150 back-to-back townhomes and  approximately 20 loft townhomes. Back-to-back townhomes are exactly what they sound like, so more homes can be packed on the site. This is just a conceptual plan and it may change, so there are no renderings or real site plans to provide, except for those filed with the Office of Zoning. The publicly filed documents are available on the Office of Zoning’s website by searching case number 17606E.

At last week’s LRCA meeting, the developer said he thinks negotiations will be settled in a month or so. We do not know if he was speaking off the cuff, but if he is correct, then more details will be forthcoming soon. In the interim, remember we asked about community benefits. If you have additional thoughts about that, let us know in the comments.

What is the verdict on Fort Totten Square

Now that the exterior of Fort Totten Square is pretty much done, what do you think? Do you like the purple and gray brick and blue paneling? How about the landscaping?

View from South Dakota and Riggs Road NE

View along 3rd Street. The brick gradually changes from purple to red to complement the residential brick on 2nd and 3rd Street.

 

View of parking garage on Chillum Place and corner of South Dakota Avenue and Chillum Place. The red brick matches the brick of neighborhood homes. Landscaping screens the garage for residents directly across the street. A few benches line South Dakota Avenue.

 

 

Change of plans to second phase of Fort Totten Square

I wrote about a proposed second phase to Fort Totten Square a few times last year. The development would be built on land across the street from the nearly completed first phase. Part of the land is owned by Lowe Enterprises and part of the land is owned by the District. Originally, JBG and Lowe proposed to build more apartments with ground floor retail.

Previous Fort Totten Square Phase II rendering

Previous Fort Totten Square Phase II rendering

Now, they are proposing to partner with EYA to build 170 multi-story townhomes with approximately 27,000 square feet of ground floor retail. Twenty percent of the homes would be set aside as below market rate affordable homes.

Because part of the land is still owned by the District, the same process we described before (surplus process) still needs to happen. The mayor’s office must declare the land surplus and hold a public hearing. Then the council will hold a hearing and vote on whether to approve disposition of the land. Interested residents will have an opportunity to testify and comment on whether they believe the land should be reserved for public use rather than sold to the developers.

Surplus property site

Surplus property site

Early consensus seems to support townhomes over more apartments. It is still early in the process though and we have already seen this project go through fits and starts in different administrations, so we will have to wait a few months to see what happens with the negotiations.

Fort Totten Square Construction Update

From JBG:

The Fort Totten Square project is 98% complete. The first and second floors of the residential including the units, courtyards and amenity spaces have been inspected and are substantially complete. Inspections of the units and corridors continue on the 3rd and 4th floors of the building. The furniture for the main lobby, leasing office and clubroom areas has been delivered and the outdoor furniture for the pool and courtyards is scheduled to arrive towards the end of the month. Site work is wrapping up along 3rd Street from the main residential arrival to Riggs Road and will continue along Riggs Road over the next month.

We’re beginning to lease the apartments and are marketing studios at approximately $1,600, one bedrooms starting around $1,750 and two bedrooms starting around $2,400. The full property website (www.forttottensquare.com) is live and has more information about the units that are available including rents and floor plans.

The build out of the Walmart space is ongoing. The retail on the corner of Riggs Road and Chillum Place is ready for tenant build out and construction of the interior spaces will begin soon. Although we haven’t announced them yet, we are excited to report that we’ve entered into negotiations with two neighborhood serving retail tenants, a national pet store and a new, locally owned restaurant concept.

Fort Totten Square Construction Update

From JBG:

The Fort Totten Square project is 95 % complete. Completion inspections are well underway on all of the apartments. The main residential entry arrival court off of 3rd Street will be finished up in April. Streetscape and site work activity will continue for the next two or three months around the perimeter of the entire site. Punch list in the amenity areas of the building is underway as well as final installations in the courtyards. The retail at the corner of Riggs Road and Chillum Place is in the final stages and interior retail construction of these spaces will start next month. The build out of the Walmart space has started with completion expected in the Fall of 2015.

 

Neighborhood development roundup: We still have questions

With the announcement of WMATA’s selection of a joint developer for the park-and-ride lot at Fort Totten metro station, now is a good time to look at the state of development in the neighborhood. Even as the first major development nears completion, questions remain about how retail will ultimately shape up for the neighborhood.

1. Fort Totten Square

Fort Totten Square Phase I with potential Phase II rendering

Fort Totten Square Phase I with potential Phase II rendering

Developer: JBG & Lowe Enterprises

Location: Riggs Road between 3rd Street and Chillum Place NE

Expected delivery: Mid- to late-2015

  • Mixed use development anchored by 117,000 square foot Walmart
  • 10,000 square feet of ancillary ground floor retail
  • 345 rental apartments

Fort Totten Square emerged the winner to be the first major development in the neighborhood. The Walmart anchor will be joined by Subway and Five Guys. There are two other retail spaces that have not been leased. Residential leasing personnel are being hired for the luxury apartments, so this development will be ready to accept residents without all of the pieces to the retail puzzle in place. Early in the development process, the developers indicated they were hoping to sign a coffee shop or a sit-down restaurant to the development. We cannot give the odds on either of those happening at this point.

In addition, talks are said to have begun again between District officials and the developers for sale of District owned land across the street from Fort Totten Square in order to build a second phase to the development. The developers provided an initial concept plan for the mixed use development for the second phase with less housing and more retail. We cannot say with any certainty though what will happen with the negotiations or the concept plan.

First to deliver, Fort Totten Square still leaves questions about what type of retail and amenities we can expect for the neighborhood in the near future.

2. Art Place at Fort Totten (Building A)

Art Place at Fort Totten Building A

Art Place at Fort Totten Building A

Developer: Cafritz Enterprises

Location: South Dakota Avenue between Galloway Street and Kennedy Street NE

Expected delivery: 2017 (though construction is undoubtedly behind schedule)

  • Mixed use development
  • Over 100,000 square feet of retail
  • 520 rental apartments

Art Place at Fort Totten is a multi-phase planned unit development (PUD).  The only tenant we know about for the first phase (Building A) is X-Sport Fitness. We are pumped about potentially having a gym in the neighborhood, but we are really interested in knowing what other anchor retailers are being targeted for Building A. The development team indicated early on that Building A would be constructed with the potential to locate three restaurants there. We also know the building will also have space for an ANC office and a daycare center.

At the ANC 5A08 SMD meeting on March 18, we learned that negotiations are taking place to have the children’s museum occupy the warehouses located at 5458-5462 3rd Street NE, rather than in Building B of Art Place as originally envisioned by the development team.

We will have to wait and see what happens with this development. The development team has long said they will be looking at the effect of Walmart’s opening on the retail landscape for the neighborhood, so they cannot provide any updates on future phases of the development. We still have questions about Building A though that also cannot be answered at this time.

3. WMATA/Donatelli Fort Totten Joint Development

Developer: Donatelli Development

Location: Existing park-and-ride lot on 1st Place NE

Expected construction start date: 2017

  • Mixed use development
  • 10,000 square feet of ground floor retail
  • 345 rental apartments
Donatelli bid

Donatelli bid

WMATA is up to its usual MO with the joint development of the park-and-ride lot at Fort Totten metro station. There were two proposals for the joint development. WMATA initially indicated they would make both proposals public. They presented the two concepts to ANC 5A’s commissioners (Fort Totten – Presentation to ANC 5A (Feb 11-2015)), but did not present at an ANC meeting. WMATA ultimately selected Donatelli.

We know the other bid was submitted by Jair Lynch.  That proposal was more arts-focused to piggyback on the concept of the Arts Place development. However, that bid proposed fewer apartments than the Donatelli bid (302 versus 345).

Jair Lynch bid

Jair Lynch bid

We have long had the sense that WMATA is not too concerned about placemaking in its development projects, despite the inclusion of a placemaking element in the RFP.

Given that there has always had long been vacant ground floor retail space at Aventine Fort Totten (another WMATA joint development project at Fort Totten), we definitely have questions about the type of retail Donatelli anticipates bringing to this project.

Residential Development

The uneven retail landscape is interesting give the huge interest from homebuyers in the neighborhood. Median home sale prices have increased and homes have sold more quickly. The Hampshires, a subdivision of detached single family homes and townhomes by Comstock Homes, has attracted a lot of interest. A PUD application was recently submitted for the Totten Mews, another project of Comstock Homes, in nearby North Michigan Park. Several newly constructed homes by independent developers have also popped up in the neighborhood.

It is clear that many people love what the neighborhood has to offer: large open park space, relatively affordable homes with outdoor space, close proximity to a major metro line and downtown, low crime, civic-minded neighbors. Newer homebuyers are certainly attracted to the potential development coming to this established neighborhood. The small area plan identifies even more potential development sites. As we can see from development in the pipeline though, the state of retail for the neighborhood remains a big question mark.

Fort Totten Square signs & construction update

The Washington Business Journal notes permits issued for Fort Totten Square signage:

300 Riggs Road NE: Roughly 17 signs will be installed on the JBG Cos.’ soon-to-deliver Fort Totten Square project, including signs announcing the Wal-Mart, a restaurant and parking. Fort Totten Square will feature 350 apartments and an urban format Wal-Mart.

We are a bit delinquent in posting the January 15 construction update from JBG:

The Fort Totten Square project is 85% complete. Interior finishes continue in all 345 apartment units along with the associated balconies with railings, wall and ceiling finishes.  The turnover process of apartment units from the contractor has commenced and the final first floor occupancy inspection is scheduled for early spring. The north retail area at the corner of Riggs Road and Chillum Place will be completed in the next few months and interior retail construction of these spaces will commence.

The brick work is complete on the façade of the residential garage on Chillum Place and fence infills and lighting is all that remains on the garage structure. The two story lobby entrance glass enclosure to the apartment building is underway at the arrival court as are the canopies. Work continues in the amenity areas of the building and the club room and fitness area located between the two courtyards is in the final finish stages with millwork, trims and final painting. The façade treatments on the courtyard elevations are complete and most all of the trees are planted in the courtyards. Streetscape site work activity will continue through the winter, weather permitting, as new street light pole bases will be installed along Riggs Road along with new engineered tree pits and finally new sidewalks.

Fort Totten Square Walmart opening pushed back

We have an update on the Fort Totten Square Walmart from community representatives. The Walmart will not open in spring 2015 as anticipated due to changes in the construction schedule, but is expected to open in either summer or fall 2015. The opening of the hiring center will be pushed back as well.

From January 19 to January 30, 2015, the Walmart Foundation is accepting applications from qualified non-profit organizations for grants in the $25,000-$250,000 range.  Visit the Foundation website for more information. Organizations interested in smaller grants should contact Kimberly Lockett.

Walmart representatives also shared the following Q & As:

1. What additional retailers at Fort Totten Square, other than Walmart?

JBG and Lowe are still in lease negotiations with restaurants and neighborhood serving retail.

2. Will there be any retailers inside the Walmart store?

No, there will not be other retailers located inside of the Walmart store.

3. What is the character of the Fort Totten Walmart going to be?

There will not be any other retailers inside the store, but there will be grocery, financial services, and health & wellness services. Financial services include GoBank accounts, Walmart-to-Walmart wire transfer and Blue Bird pre-paid check cards.

4. Where is the Walmart customer parking entrance and is there zoned parking in the DDOT plan for the neighborhood?

Customers will enter Walmart from two parking entrances, one on Riggs Rd. NE the other on 3rd [St.] NE, per the plan approved by DDOT. Community stakeholder meetings after the store opening will be used to receive feedback on issues including parking, transportation, etc. If there are any specific issues noted by the community, Walmart will work with [the]community to address any outstanding issues. There is no zoned parking directly surrounding the store due to garage parking availability.

5. What will traffic patterns be for delivery trucks to Walmart and Fort Totten Square?

All truck loading/unloading for Walmart will be conducted inside the underground parking garage. Trucks will use Riggs Rd. NE and not travel on Chillum Rd. or other local roads.

6. Employment

a. How many people will be employed at the Walmart?

Approximately 300 associates will be employed at the Walmart

b. Are there requirements for local hiring?

While there are no local hiring mandates, our stores actively recruit, hire and retain associates from the local community. For example, over 65% of Walmart’s associates in Washington’s two existing stores are DC residents.

c. What will the job hiring center look like and what is the application process?

All of the applications are submitted online. Our HR department reviews all applications and interviews candidates at the job hiring center. Once a candidate has satisfied the conditions stated in the offer of employment, they begin training and employment shortly thereafter.

Fort Totten Square: Wing Stop & 2nd Phase Rendering

JBGR, the retail arm of developer JBG, has updated the marketing brochure for Fort Totten Square showing the addition of Wing Stop to the development on the corner of Chillum Place and Riggs Road NE. That leaves one more retail slot available for that corner and one slot still available on the corner of 3rd Street and Riggs Road. Usual caveat: This is just a marketing brochure, not any declaration of binding leases.

The brochure also includes a site plan and rendering for the second phase of the development. Recall that the developers own property south of Phase I on South Dakota Avenue and Riggs Road. They are in negotiation with the District to purchase an adjacent District-owned parcel to build a second phase (see our post on that process here). The site plan depicts retail fronting Riggs Road and a portion of South Dakota Avenue with residences above the retail. A separate entirely residential building sits on South Dakota Avenue. The buildings surround an above-grade parking structure.

A bit of commentary: The retail offerings for Phase I are a big disappointment. I suppose we should not be too surprised once a 120,000 square foot Walmart was signed on as the ground floor anchor. And once Carolina Kitchen pulled out, it was just a matter of time for the developers to line up other retail tenants for a 2015 opening. The developers have said they already have more (and presumably better) interest in the second phase from retailers, as that location offers better visibility. We’ll see what that means.

Five Guys to Fort Totten Square

Editor’s note 7/24/2014: We should have added the usual caveat that the brochure does not mean a lease has been signed. We’ve been told the developers have a letter of intent with Five Guys, not a signed lease just yet.

According to an updated brochure from JBGR (the retail arm of developer JBG), Five Guys will be joining Subway at Fort Totten Square on the corner of Riggs Road & Chillum Place NE. That space was to be occupied by Carolina Kitchen/TKO Burger before they pulled out. This addition leaves one vacant retail space between the Subway and the Five Guys, as well as the vacant space on the corner of 3rd Street & Riggs Road, to which the developers have been hoping to lure a coffee shop.

Fort Totten Square Site Plan

Comment by June 24 on surplus designation of Riggs Road/South Dakota parcel to be sold to Fort Totten Square developers

South Dakota and Riggs Rd Parcel

City-owned parcel on SE corner of Riggs & South Dakota being negotiated for sale to FTS developers

South Dakota and Riggs Rd Project Background (background document on the parcel; we also discussed this topic in this post)

On June 10, the Mayor’s Office held a public hearing on designating the city-owned parcel at the southeast corner of Riggs Road and South Dakota Avenue NE surplus property so that it may be sold to the developers of Fort Totten Square to develop a second phase to the project.  (Full disclosure:  I gave conditional support for the surplus designation at the hearing and participated in the process for preparing comments by the Lamond Riggs Citizens Association, which also provided conditional support for the surplus designation.)  The mayor’s office will accept written comments submitted to Project Manager Marc Bleyer by June 24, 2014 (email here).

The council has the final say on declaring the property surplus (to say there is no public need for the property) and approving its sale.  It approved a sale in 2006 to Lowe Enterprise, at that time the sole developer of Fort Totten Square.  In 2008, the developer and the mayor’s office entered into a land disposition agreement that eventually expired in 2011 before closing.  Now the sale is being renegotiated with the current Fort Totten Square developers (JBG and Lowe).

The hearing appeared destined to be short with the initial commenters commenting in favor of the surplus designation.  In my own comments, I stated that I support the surplus designation, but that any development should incorporate some public benefits.  I figure I have little reason to believe the city will actually do anything with this land that is bookend by the sidewalk and the land that is already owned by the developers (see photo at top of post).  The LRCA submitted comments requesting that certain public benefits be incorporated into the land disposition agreement addressing affordable housing, business development, workforce development, and neighborhood support and improvement.  One person commented that some residents use the land to walk their dogs and also expressed concern about having amenities for low-income residents in the community.  A few commented on the need for affordable housing.

Eventually, a few ANC 4B commissioners got around to questioning the process.  The mayor’s office is not putting the land out for bid because the council already approved the sale at one point and the mayor’s office has the right to renegotiate the 2008 agreement.  One commissioner questioned why the mayor’s office did not bring any visual aids so that people would know exactly what parcel was the subject of the hearing.   The commissioners also questioned why the developers, who were present at the hearing, did not present on their plans for the property beforehand so that people could decide whether they liked those plans before saying yes or no to disposing of the land.  ANC 4B plans to address the surplus designation at its monthly public meeting on June 23, 2014.

After the hearing concluded, the developers presented a concept plan for the property if they are successful in obtaining the city-owned portion.  Just as with Fort Totten Square under construction on the north side of Riggs Road, they plan to construct a mixed-use development.  Two of the buildings would have retail on the ground floor with apartments (rental or condo) above.  The third building, which would face South Dakota Avenue, would be all residential.  There would be a structured garage behind the buildings.  The idea is to have 8-10 retailers to create a shopping destination for the neighborhood.  Preliminarily, they have agreed to the same conditions as the 2008 agreement (see link to background document above).  Again, the council has to declare the property surplus and approve the sale in order for them to proceed.

If you have any thoughts you would like to share with the mayor’s office, do so before June 24.

June 10: Surplus hearing on Fort Totten Square south site property

 

City-owned parcel subject of surplus hearing on SE corner of Riggs Rd & South Dakota Ave NE

City-owned parcel subject of surplus hearing on SE corner of Riggs Rd & South Dakota Ave NE

The mayor’s office is holding a public hearing to designate city-owned land on the southeast corner of South Dakota Avenue and Riggs Road NE surplus property in order to be sold to the Fort Totten Square developers for the second phase of the development.  Phase one of the development is well underway on the north side of Riggs.  The mayor’s office is required to solicit comments on designating the property “surplus,” which means that the land is not required for a public purpose.  The hearing will take place on Tuesday, June 10, 2014, at Riggs-Lasalle Recreation Center at 6:30 pm.

The mayor’s office will hold this public hearing and then present a package with a land disposition agreement to the council for the council’s approval.  The council will then hold its own hearing before deciding whether to declare the property surplus and approve the sale of the land.

The parcel, which is sometimes referred to as the Fort Totten Square south site, was the subject of a 2006 council resolution that provided for the sale of the land to Lowe Enterprise.  Lowe, which at that time was the sole developer of Fort Totten Square, owns a parcel adjacent to the city property and sought the city-owned land to make a more viable development.  The 2006 resolution provided for a number of conditions to the sale including:

  • The developer will develop a mixed-use project in accordance with a master plan.
  • The Mayor will retain design review over the master plan
  • The developer and the Mayor will agree to a profit participation program
  • The developer will abide by a First Source Agreement and execute an LSBDE MOU to contract with local, small businesses for at least 50% of the pre-construction and construction on the project
  • The developer will provide no less than 20% affordable units: 10% affordable to households earning 80% AMI or less; 5% to households earning 60% AMI or less, and 5% to households earning 30% AMI or less.

The sale was delayed by DDOT’s reconfiguration of the intersection.  In the interim, Lowe teamed up with JBG to develop Fort Totten Square and now the city is once again negotiating with the developers over the sale of the land.  If you have thoughts about the surplus designation, let the mayor’s office know at the June 10th hearing.  The record will be kept open for a period of time after the hearing for people to submit written comments.

Hearing notice

Hearing notice

Fort Totten Square Walmart now expected to open April 2015

On March 20, 2014, the Lamond Riggs Citizens Association and Lamond Riggs Library hosted a community meeting on Fort Totten Square.  There is not much new to report, except that the opening for Walmart and the other retail is now April 2015 (previously the developers said December 2014).  Residential move-ins are expected around February/March 2015.  Walmart’s anticipated operating hours are 6:00 am to midnight.  Walmart representative Nina Albert stated the company will hold information sessions for people to meet management and learn success tips before applying for jobs.  Ms. Albert emphasized that the company is very interested in hiring from the local community.  In addition, Walmart will work with DC’s Department of Small and Local Business Development to publicize at the appropriate time a prebid conference for subcontractors.  In response to questions about selling beer and wine, Ms. Albert mentioned there is a Ward 4 moratorium on alcohol sales and asked for the community’s help in securing an exception so that the store can sell beer and wine.

We previously mentioned that JBG’s retail arm has a brochure marketing the project with a Subway and Carolina Kitchen.  JBG has executed a lease with Subway.  However, the developer is still working on securing a lease with Carolina Kitchen and continues to anticipate securing a sit-down restaurant for this first phase.  JBG is also actively working to secure a coffee shop for the project.  In response to comments about having more upscale retail choices, the development team solicited community recommendations, stating if anyone has contacts for restaurant, coffee shop, or retail operators who have a good track record to let them know.

Fort Totten Square Fact Sheet

Fort Totten Square Fact Sheet

 

Save the Date: March 20 Community Meeting with Fort Totten Square developers & Walmart

Fort Totten Square Community Meeting Flyer

Fort Totten Square Community Meeting Flyer

The Lamond-Riggs Citizens Association and DC Public Library are sponsoring, “What’s Developing at Fort Totten Square,” a community-wide meeting, on Thursday, March 20, 2014, at 7:00 p.m. at the Lamond-Riggs Public Library (5401 South Dakota Avenue NE).

2014 will mark key milestones in the construction of a mixed-use development project at 3rd and Riggs Road NE. Learn what to expect, and get your questions answered by key representatives from Fort Totten Square, Wal-Mart and the community.

For more information or to submit project-specific questions in advance, send an email to lrdtf.info@yahoo.com or call 202-541-6255

The Carolina Kitchen/TKO Burger/Subway headed to Fort Totten Square

Well, the cat is out of the bag.  JBGR has a brochure (pdf) out stating that local southern cuisine chain The Carolina Kitchen and Subway will be part of the Fort Totten Square development anchored by a 120,000 square foot Walmart.  TKO Burger, a concept developed by the same owner as the Carolina Kitchen, will also be part of the development according to the TKO Burger website.  The Carolina Kitchen & TKO Burger will occupy the space on the corner of Chillum Place NE and Riggs Road NE.  That leaves one retail location of around 1700 square feet available for lease on the corner of 3rd Street NE and Riggs Road NE.

 

Progress at Fort Totten Square

Below are pictures showing construction progress at Fort Totten Square.  By now, one can get a sense of how tall the building will be.   Walmart will occupy approximately 120,000 square feet of the ground floor and four other retailers will occupy the remaining ground level space.  Three floors of stick built apartments will sit above the retail.  The developers expect the Walmart to open for business around the beginning of December 2014, while the other retailers will likely open around early spring 2015. 

Walmart-related Development News

A couple of Walmart-related development items:

Large Retailer Accountability Act

By now, most have surely heard about the op-ed by Walmart regional general manager Alex Barron, stating the retailer will not proceed with three previously announced District stores that have not broken ground (Skyland, Capitol Gateway, and New York Avenue NE), if the city council passes the proposed Large Retailer Accountability Act of 2013 (LRAA).  The LRAA, commonly known as the living wage bill, would raise the minimum wage for employees of retail employers with at least $1 billion in sales and that operate in spaces of at least 75,000 sq ft., from $8.25 per hour to $12.50 per hour.  The DC council is scheduled to vote for a second time on the bill on July 10, 2013.  On the first reading of the bill, the council voted 8 to 5 in favor of the bill.  According to the Washington Post, Mayor Vince Gray issued a statement encouraging the council to reconsider the bill and its stated purpose.  The Washington Business Journal reports that the Skyland developer stated that project will be on hold indefinitely if Walmart pulls out as an anchor for the development.  Mayor Gray personally lobbied Walmart to anchor the development.  Prior to Walmart’s July 9th op-ed, the Washington Post published an editorial against the bill.  That editorial followed media reports, in which Walmart executives stated they believed the city was pulling a bait and switch by soliciting Walmart’s business and then changing the business conditions under which the retailer would operate through the LRAA.

With the Washington Post editorial against the bill, the Walmart op-ed, and Mayor Gray’s statement, it is hard to see a path to enactment for the LRAA.  There are policy and technical reasons not to support this particular iteration of what some call a fair wage law, but a few questions remain.  Does Walmart’s threat now mean that even if the bill fails, any future attempt by the council to raise minimum wage across the board will be met with threats to shut down stores?  Will Walmart decide not to proceed with the three stores not under construction even if the bill fails because conceivably, according to Walmart’s logic, the council could always later introduce a bill to raise the minimum wage before all six stores have broken ground?

These questions lead nicely to the second bit of Walmart development related news since Walmart executives also stated the LRAA could affect even the three stores that are already under construction, which includes the store planned for Fort Totten Square.

Buyers sought for First and H Street Development 

The Washington Business Journal reports that the JBG Companies is seeking buyers for the Walmart-anchored mixed-use development at First and H Street NW.  That project is scheduled for a fall 2013 completion.  No other retail tenants have been announced so far.  It is not too surprising that JBG has listed the development since the developer tends to put up several of its projects for sale.  However, this is noteworthy because JBG is also part of the team developing the Walmart-anchored Fort Totten Square, along with Lowe Enterprises.  This is one of the reasons we have always believed it is important to get the Fort Totten Square project right from the beginning in terms of design and retail mix.  JBG could very well exit the project at some point.

Of course, these two Walmart-anchored projects are in different neighborhoods with different market conditions, so it is not a given that the developer will do with Fort Totten Square what it has done with First and H.  And in fact, JBG has treated the two developments quite differently.  According to the Washington Business Journal, the Walmart lease for First and H is only 20 years, while we know the retailer’s lease for Fort Totten Square is 60 years.  While both developments are mixed-use projects, the Walmart store at First and H is significantly smaller than the planned store at Fort Totten Square (80,000 square feet versus 120,000 square feet).  The First and H project does not incorporate Walmart’s typical blue branding in the building’s design.  However, the Walmart blue branding, which has appeared less frequently in recent building designs, is incorporated a bit in Fort Totten Square .

As we mentioned in a previous post, having a Walmart-anchored development in the city can carry certain risks depending on a developer’s goals.  It is interesting to see how these two projects by the same developer are shaping up.  A couple of the differences were pointed out in the past and the developer provided rationales for the differences.

Now with Walmart’s announcement about the LRAA, it will certainly be interesting to see what happens with the Walmart-anchored developments.  Another Walmart store (the Georgia Avenue store) under construction less than two miles away from Fort Totten Square is scheduled to be completed this year, while Fort Totten Square is not scheduled for completion until 2015.  There have always been questions about how this dynamic will play out.  Supposedly, Walmart executives believe the planned Fort Totten Square store will be its most successful DC store of the six announced to date.  Given this dynamic and what we know about how the various stores currently under construction are designed, one has to question how many Walmart stores will end up in the city, no matter the fate of the LRAA.