The D.C. government is set to acquire and transform a row of commercial properties on Georgia Avenue, which recently entered foreclosure due to the closure of Neighborhood Development Co.
Mayor Muriel Bowser introduced emergency legislation to the D.C. Council last week, which was swiftly passed, enabling the acquisition of six lots situated directly north of the Engine Co. 22 fire station at 5764-5812 Georgia Ave. NW.
The properties are projected to cost the city $2.8 million, with funding sourced from the Contingency Cash Reserve Fund, as detailed in a memo from D.C. Chief Financial Officer Glen Lee accompanying the bill.
This row of low-rise buildings currently hosts a variety of tenants, including a Papa John’s Pizza, Simple Bar and Grill, an Ethiopian restaurant, and a mattress store, as well as an undeveloped lot managed by a used car business.
The mixed-use zoning of these properties permits up to 119,000 square feet of development. Mayor Bowser emphasized that it is essential for the District to ensure these properties are utilized for an economically advantageous purpose.
In her correspondence with the council, Bowser stated, “It is in the best interest of the redevelopment of these properties for the District to acquire them and ensure a cohesive development process.”
The acquisition is particularly significant given the proximity to the Engine Co. 22 fire station, for which the D.C. government allocated $12 million for construction in 2017. Adjacent to these properties is the recently developed Soapstone Apartments, a 49-unit multifamily project by Petra Development.
Despite the council unanimously supporting the acquisition bill, a couple of lawmakers expressed concerns regarding the lack of prior engagement from the Bowser administration before the emergency legislation was introduced.
Ward 4 Council Member Janeese Lewis George, whose district encompasses the properties, voiced her worries about the implications for small businesses like Simple Bar and Grill. She highlighted the establishment’s importance as a community hub known for karaoke nights.
“We were excited about the redevelopment, but we felt we didn’t have enough time to discuss the potential consequences,” Lewis George remarked during a June 17 council meeting. “Many local small business owners are part of our community and currently have leases in these properties.”
Neighborhood Development Co. had acquired the commercial properties back in 2015 for nearly $1.9 million, according to deed records. They financed the acquisition with a $1.4 million loan from Bank of Georgetown, which has since been acquired by United Bank.
In March, United Bank initiated foreclosure proceedings on the properties, citing a remaining loan balance of $1.1 million. A foreclosure auction was scheduled for May 1 but later canceled, as indicated on the auctioneer’s website.
Adrian Washington, the founder of Neighborhood Development Co., announced in September that he had shut down the firm, referencing an
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