2011 is the year for CityMarket at O and we have begun construction. We have been doing exploratory borings and soil studies related to Metro and foundation design. Most of the work so far is being done during off hours so as not to interfere with Giant.
As you may have heard from HUD Deputy Secretary Sims at the groundbreaking, we are using HUD financing for the construction loan. We have received permission from HUD that has allowed us to start with façade support and work to secure the market structure. We will be picking up our permit for this work in late January and starting work shortly thereafter.
We have been working closely with HUD on our 220 financing but the process is taking time and patience. Concurrently, we have significantly advanced our drawings and have begun the District’s permitting process for the project. If HUD processing remains on schedule, we hope to begun excavation as soon as we close our loan this summer.
Does this mean the project is going to be delayed further? Is the Giant still going to be closed this month?
ReplyDeleteThe Shaw residents have been waiting for visible progress related to O Street for years, and it seems that every other high profile project in the city happens a lot more quickly (Howard Theater, City Vista, Columbia Heights,etc).
Is there anything citizens can do to help O Street move forward?
Jim, there is no further delay. The move of the Giant closing to late Spring has been public since last summer. We plan on starting excavation as soon as we close the HUD loan this summer. With the exception of the Howard Theater, the other projects you named were developed in a very different economic climate. If the economy had not tanked and private equity had not dried up in 2009, we would be well under construction. However, when all of our potential private equity investors dried up, we had to rethink our financing. We have been working with HUD since the summer of 2009. Underwritten at $104 million, CityMarket will be one of the largest HUD 220 construction loans and at over $225 million in project costs, one of the City's largest and most complex neighborhood projects.
ReplyDeleteBest for 2011,
Susan
Thanks for setting up this blog. Regular posts on progress and activity will help all of us understand your challenges and be comfortable that you guys are moving toward large-scale construction (even when it the site looks inactive). Moving development in this market is hard, we're all glad you have financing and are moving forward - if a little anxious to see bulldozers and cranes.
ReplyDeleteA small favor from the neighborhood...if you're going to set up a blog for this project, could you at least give us a status update once a month to let us know what's happening...even if it's not much at least we'll know the project isn't abandoned...again.
ReplyDeleteThanks!
Were permits picked up in late January for the work to support the facade and to secure the market structure as noted?
ReplyDeleteAs others have pointed out, it would be great to get updates at least monthly. And we're all very excited to see visible progress with this project.
Thanks.
You are absolutely correct...I will be more diligent about updating.
ReplyDeleteCheck out today's blog. Shaw has been so patient, I want to make sure that before I post I am as confident as can be that what I say will be..
ReplyDelete