Developers, charter schools interested in vacant D.C. schools

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Washington Business Journal
Developers, charter schools interested in vacant D.C. schools
By Jonathan O'Connell
Monday, January 12, 2009

Despite the real estate slowdown, D.C. seems to be attracting interest in some of its vacant school buildings, but members of the D.C. Council aren't so enthused.

More than 150 people crowded into a "pre-bidder" meeting Jan. 9 to hear details on 11 former D.C. school buildings that city wants to put to new use in partnership with private developers. In the crowd were representatives from a bevy of developers, including Donohoe Development Co., Four Points LLC, PN Hoffman Inc. and William C. Smith & Co. The meeting also attracted charter schools looking for new space, including some that asked for room in empty schools last fall.

The schools, some of which were closed last year as Mayor Adrian Fenty and Schools Chancellor Michelle Rhee restructured the school system, are scattered across the city and range from plots of land just under 1 acre to more than 5 acres, with buildings up to 131,000 square feet.

Officials from the office of the deputy mayor for economic development asked developers to submit creative ideas for re-use of the schools and told them they could bid on more than one property or bid with multiple teams on the same property.

With the difficulty in financing new development, interest has waned in bidding for some D.C. projects, such as the Park Morton housing development. But Corey Lee, the city's project manager, said only one deposit of $50,000 — smaller than usual — is required for an unlimited number of bids. Lee also said the city will consider the difficult lending environment, which he called "extremely unique, to say the least," when making selections. One of the city's frequent requests, asking developers to build below-market-rate housing, is not listed in the solicitation.

Fenty's plan to develop the properties still faces multiple hurdles. Although he solicited interest in the buildings last fall from charter schools, as required by law, none has yet received space, and charter school advocate Friends of Choice in Urban Schools is arguing that the mayor is eschewing his duty to consider charters for former school buildings.

Leaders from a number of charter schools, including Capital City Public Charter School and Washington Yu Ying Public Charter, a new Chinese language immersion school, attended the meeting.

Members of the D.C. Council are also unhappy with the prospect of selling off old schools.

Councilman Tommy Thomas, D-Ward 5, whose district has lost more schools than any other ward under Rhee, submitted legislation that would tighten the process of selling or leasing city property.

The vacant school solicitation "highlights the importance of establishing a rigorous process for determining whether District-owned properties are no longer needed for public purposes," Thomas said in a statement.

Similarly, a new bill by Councilman Marion Barry, D-Ward 8, calls for the State Board of Education — not the deputy mayor's office — to control vacant schools and establish a process for giving charter schools the first opportunity to bid. The mayor's office says it offered the buildings to charter schools first and that charters are still free to partner with developers.

Councilman Jack Evans, D-Ward 2, backed the mayor in trying to return life to the empty buildings. Ward 2 is home to one of the most valuable and discussed properties on the list, Stevens Elementary School.

"I think the process is working fine," Evans said. "I don't agree with Council member Barry or Thomas as to why they would want to slow these things down."

His preference for Stevens, on 21st Street NW, would be a use that activates the neighborhood outside of 9-to-5 on weekdays.

"Putting corporate offices in any of these buildings is not something I would be supportive of," Evans said. "Residential, hotel, retail, any combination thereof, is really important, particularly in these downtown areas."

He added, however, that there may be enough sentiment on the council against selling the schools to disrupt the solicitation process.

"It's going to be a challenge on where the votes are," Evans said.

Bids for the schools are due Feb. 27.

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