I'm a new home owner in the area. I'm not sure what the political undercurrents are you speak of poo poo, but it’s disappointing that an area with so much potential and on the cusp of redevelopment can't get together to help out local merchants.
...about as misguided as someone who sits behind a computer with critical commentary about the community without suggesting any proactive measures? Flourishing neighbourhoods thrive on optimism.
I think good criticism is worthy in and of itself. Not everyone who is a good critic/analyst can offer solutions. Feel free to pillory bad criticism though.
doesn't stating something is wrong imply by negative inference that the speaker knows what something would look like when it's done right?
seriously, saying "until warring factions can get their shit together, i say forget it" is fatalistic.
if anything, i'd say a citizen's group should try to organize a h street festival themselves. i'm willing to help on that: securing sponsors, acts, vendors, etc. anyone interested, let me know.
I don't think Poo Poo's post is negative...tells it like it is. But I have to ask for clarification...we are talking about H Street Main Street not H Street Development Corporation, right?
The post refers to H Street Main Street [HSMS], not to the CDC. I assume the comments are talking more generally about tensions that can arise between certain interest groups in the neighborhood.
So can anyone shed some light on this? I sometimes confuse the different H Street groups. Which one is the one that's been around forever, responsible for the dreadful public storage building and the other fairly useless 'improvements' of years past?
As someone who had a booth at the festival, I think HSMS may be right to withhold some monies - the "producers" were a disorganized bunch. As a long ago volunteer for HSMS I'd just say that while it could be more effective (a lot more) it's pretty difficult to sucessfully run any kind of organization with only one (low) paid staff member and volunteers (mostly neighbors) and members (merchants) that often have different priorities and different measures of success.
For the record, the H Street CDC is the development corporation that everyone loves to hate and the HSMS is basically a merchants association.
i didn't say negative, i said fatalistic. and how would you define the phrase 'until warring factions can get their shit together, i say forget it', oh dear anonymous @ 10pm?
how about 'maybe we're just not ready for folks to cooperate in this part of dc.'?
that doesn't strike you as fatalistic?
here, let me help:
http://dictionary.reference.com/browse/fatalistic
there's a lot more that residents can do about the h street festival other than throw their hands in the air.
To build slightly on 11:38's comment, HSMS is basically a merchant's association [that's how it started] that, in theory, follows a particular frame work being followed in communities across the country. HSMS doesn't build things, it's basic function is more in improving the corridor by informing merchants about loans that may be available, and in doing thing along the lines of promoting the corridor. Hence the festival. And yes, unlike the CDC, HSMS is basically volunteer driven.
The CDC, has built some stuff on H Street, like the government building across from the self-storage. My understanding is that many of the projects were carried out using CDBG money awarded by DCHD. I don't think that the CDC had anything to do with the self-storage site. That is just a recycling of an old automotive dealership.
We have built some great momentum on H without taking ANY money from the dc or federal government (but I wouldn't say No to a handout). I think the farther you stay away from any government that you can, the better off you are. It takes a village, not a bunch of bureaucrats, policy wonks and true believers in the government teat. A little bit of organized anarchy goes a long way!......
Speaking of "government", has anyone seen or heard from our ANC representative Raphael Marshall lately. He has been MIA and unresponsive to several neighborhood concerns. Does anyone know when the next ANC rep. elections are?
Unrelated question regarding the neighbourhood -- are there monthly gatherings/happy hours where folks can meet in an apolitical context? The Shaw folks meet at Old Dominion Brewery once a month...is there something similar for we H Street folks?
I don't buy the "we have no money, we rely on volunteers" excuse. Plenty of the MS organizations in DC do a lot more with the same constraints (look at Barracks Row). HSMS is poorly run.
I tried to volunteer to help with fundraising/grant writing over 2 years ago, when the organization still had a decent amount of funding from DC. The executive director at the time was so disorganized I finally gave up. I'm not alone, HSMS has turned off many once eager volunteers. The best solution would be to change the name, and start over with a new board of directors, clean slate.
I recently purchased and moved in to the neighborhood. Before I closed on my house, I did a bunch of research on the area (this was a GREAT source of information) and emailed Raphael Marshall a few times. My emails were mainly "Hey, I'm new, want to get involved, blah blah blah. Please let me know what I can do, blah blah blah." He never responded to me once.
I was on the Board at my former condo association and I routinely responded to new home owners like that. Its a great chance to meet people and bring the community together. I was extremely disappointed that my first 'interaction' with my new ANC was ignored. What kind of community leader is that?
If you live in ANC6A and have been unsuccessful in making direct contact with your ANC representative, try contacting him/her in the open, e.g. on the ANC6A mailing list.
To Soul Searcher(this is anon 10pm), for some reason your post wasn't up when I posted...I wasn't responding to you, but....I hope you have had an opportunity to read the posts that have come after yours. I would suggest a better word is "realistic". I've lived on the Hill for over 20 years...you gain some insight after that length of time. Instead of just being able to get things done...there is always politics involved.
Just some info...I am of the impression that Barracks Row operates differently and wondered if anyone had any information on that. I just met two days ago the person who was "hired" to do their promotions. They obviously have the ability to have a payed staff. Is the director of HSMS a fully paid position that is full time or is this a volunteer position?
Anon 1:48pm, sorry to hear that as a new resident you too have not heard from Raphael. If he were the least bit interested in keeping his position he would be much more responsive to his constituents.
Can anyone tell me when the ANC Representatives are up for re-election? Anon 1:48, maybe you would consider running with your Condo Board experience you're probably more qualified than some.
Raphael, is a nice guy, but he's not a good ANC Representative. He said one time in a SMD meeting that he was elected "unanimously". If I have my history correct (Inked, maybe you or someone can verify), Raphael was elected during a special election to fill in for a corrupt representative. He was elected unanimously: There was no oppostion and something like 72 people voted. I don't think he would be difficult to defeat, if in fact he is still interested in his postion. Based on his response to his constiuents, it doesn't seem that he is.
Two years ago HSMS Executive Director was the only paid position. At the time she told me the grant from the city would be halved every year until it phased out (in 2007 or 2008 maybe), and wouldn't be enough to pay even one salary in the final year. The last 990 form available online is 2005, so they may or may not have any paid staff today.
Barracks Row Main Street is so different from all the other programs. For one, it was founded three years before the city program was started. For another, it was started in a part of the city that has tremendous social and organizational capital--meaning strong local organizations--leaders, and access to funding sources that typical programs do not have--i.e., a bunch of federal earmarks have gone their way. Even so, they scrape for money. Imagine how hard it is in areas without the same level of resources, and without the same level of history and experience of different groups working together, i.e., CHRS was created in part to fight a freeway through Capitol Hill in the late 1950s. None of the extant community organizations in "Near Northeast" are much older than the late 1980s. And the area has never had funding resources that were comparable.
To be fair to Anwar in this case, my sympathy-empathy is with him. My understanding is that the Festival organizers want all the "overage" or the excess of the profits over expenses. People complain that Main Street organizations don't have money. This kind of overage is where funding comes from.
Just for the record, Raphael Marshall did not, I repeat did not replace a corrupt official. He replaced someone that merely resigned. Commissioners are not paid, and great demands are made on them by constituents. They often must deal with a very unresponsive city government. Please don't slander them.
Richard, thank you for your information on the Main Street program. My feeling was that H Street did not have the same resources that Barracks Row did. From what I have gleaned the H Street gig is very difficult for all the reasons that you mention. But from what I am picking up just from this thread, the Main Street program seems like a really iffy concept and totally dependent on if the "right" volunteers and enough of them step up to the plate. And then there is the whole organizational/political thing. Why isn't a developer for the whole street just brought in? It seems like with some sort of community road map coupled with professional experience that things would get done instead of all the limping along. Just a naive thought.
Anon 5:53 said "Please do not slander 'them'." I do not see it as slander to say someone is not responsive to their constiuents - even if only one, but in this case its becomming many.
Mr. Kimber seems to respond to his constituents through this (and his) blog regularly. It would be nice if Mr. Marshall did the same - or at least returned people's phone calls.
Anon 8:42 -- you're being deliberately obtuse. Please re-read what was written -- the entire thing, so that "them" you're keying on is taken in context.
I agree with you that it's important for ANC Commissioners to be responsive to their constituents, and that it would be good for Mr. Marshall to improve in this regard if the few posts here tell the entire story (an important if).
Anyone interested in ANC 6A, please visit our website at anc6a.org. We have a handful of very active volunteer committees – dealing with issues ranging from zoning, to liquor licenses, to transportation - and we welcome anyone’s participation.
At our next ANC 6A meeting on January 10, 2008, we will be providing a "snap shot" update on H Street. Our meeting starts at 7:00pm and is held at Miner Elementary School – the 600 block of 15 Street, NE. The following people have confirmed their participation:
Director Moneme and Ms. Karina Ricks from DDOT, will discuss the H Street NE Streetscape project to include status of the contract, tentative construction plans (where will construction start) and the status of ordering the street cars funded in the FY 2008 budget. Time 10 - 12 minute presentation with 5 - 10 minutes of questions and answers.
Mr. Woody, from the Mayor’s office of Economic Development, will provide a short update on the following: (1) Great Streets Neighborhood Retail Priority Area, (2) Target Building Improvements - Corridor Wide and (3) Mixed Use Development Partner to Build a Bigger and Better R. L. Christian Library in a Mixed Use Building. Time 10 - 12 minute presentation with 5 - 10 minutes of questions and answers.
Mr. Saleem, the Director of HSMS, will provide an update on the clean and safe program for H Street and the on-going efforts for the facade improvement program. Time 5 minute presentation with 5 - 7 minutes of questions and answers.
Councilmember Wells and Brown will be on hand to participate as well.
We have also invited the following:
Mr. Barrow, from H Street Main Street has declined to participate, but will be in attendance at the meeting.
Mr. Rappaport, who owns the H Street Connection located at 8th and H Street, NE, has been invited to participate and we are still waiting to see if he will attend the meeting.
For all residents, this will be a good opportunity to meet your Councilmember, the key players on H Street as well as your local ANC representatives.
Re: Raphael Marshall. I'm sorry to be late to this chain but was away for the holidays. I supported Raphael in his past 2 elections because he was my neighbor and seemed energetic and eager. As mentioned by several others, Raphael has not been seen in quite a while. I live across the street from him and have not seen him in months and that includes at his regularly scheduled meetings. They were the first Wednesday of every month. He announced at the last full ANC meeting (not his individual meeting) that he will reduce the frequency to quarterly (despite monthly meetings being a campaign platform). it is just as well though, his attendance at his own community meetings has been poor. He most recently missed the December meeting (without telling those of us waiting for him in the cold) because of one inch of snow (he lives 100 yards from the meeting place). when I called to ask him where he was, he hung up on me. His attendance at the ANC meetings is not much better. he missed 3 of the last eleven meetings. I can go on about his unresponsiveness.
Long story short, its time to replace Raphael. He is up for election this coming November. I am compiling a list of his missed votes, gathering information from neighbors about how he has unresponsiveness, and trying to get a list of people who are willing to work to replace Raphael. We need a willing candidate though. We simply cannot let Raphael run unopposed again. (Note: still was not a unanimous vote. There were 11 write in votes against) If you live in ANC6a01 and want to help or know a strong candidate, please email me at waynedangelo@hotmail.com.
Pending the resolution of a dispute with H Street Main Street (HSMS), regarding compensation for allowing HSMS to have their name associated with the H Street Music Festival and Bazaar, as well as ownership of the web domain hstreet.org, this web address will no longer host its previous content and design.
Kwasi Frye and Raphael Marshall (R/K Productions) have organized and produced the H Street Festival since 2004. During this period, R/K productions have, in good faith, produced this festival for the betterment of the H-Street corridor. However, despite the professional and highly successful festivals produced by R/K productions, HSMS has refused to abide by the terms of a mutually agreed upon contract. In short, HSMS is refusing to pay R/K Productions for the innumerable hours of work that was put into the production of the festival. This is morally wrong, and violates the basic terms of the agreement. R/K production is committed to ensuring the future success of the H-Street Festival and will not bow down to the petty antics of HSMS. We ask that you join us in this effort.
If you have pertinent questions about the corridor, we suggest you peruse the best source of information about H Street, NE Washington DC. http://frozentropics.blogspot.com
The web domain HStreet.org will continue to provide the business directory, as it is a useful tool for corridor residents; the online directory was conceived by Kwasi Frye (the site owner, the site designer and the webmaster). You can add your business instantly to the directory. If you are interested in making this site a great tool for the H Street corridor, please send your suggestions here: suggestions@hstreet.org. If you are interested in purchasing this web address send an inquiry here: hstreet.orgforsale@hstreet.org.
Well, Main Street is a difficult concept to work right, you need cooperation from many different stakeholders, and there has never been enough funding, until now, to try to make it work.
Then there are the issues of who is allowed to contribute and shape the agenda. That is contentious in all neighborhoods, not just H Street. (I write quite a bit about all these issues in my blog and won't bore you with links.)
This is complicated by the fact that most properties are owned by people not in the neighborhood (that is one of the reasons commercial district improvement lags residential district improvement).
That the city government isn't on the same page with commercial district revitalization -- in other words, every agency does its own thing (well, DC Office of Planning and DDOT are on the same page, while DCRA, zoning regulations generally, DPW sometimes although I think they do a decent job, MPD, and DHCD are on different pages).
Even the agencies that have it together don't always understand how things work at the level of block by block.
Then there is the business owner piece. Many businesses don't create great concepts or offer the right value. Phish Tea is a perfect example. This slows improvement, because you need to see success to attract other business creators-investors. Related to this, imo Joe Englert's involvement has probably speeded up improvement by at least 5 years. Imagine H Street and an improved Atlas Theater and how it would be dead without the places he has brought to the corridor. (This is the kind of linkage that is necessary but rarely done in commercial district revitalization, which is why it takes so long.)
Even in the best of circumstances, commercial district revitalization is hard and takes a long time.
But I do disagree with the idea of a master developer. If you believe that H Street's competitive advantage rests in its authenticity, likely a master developer would crush that, making the corridor up to be more like H Street Connection.
Finally, another difficult thing that H St. has to deal with is the competitiveness of the H St. CDC vis-a-vis more ground up prespectives. The CDC was charged to implement projects based on the Urban Renewal Plan, which has a much different orientation than a Main Street program. But even in the worst of times, the CDC was always far better funded than the Main Street program has ever been.
Richard Layman's post almost makes H Street seem like a hopeless proposition or at the very least a very loooooong haul. I posted with the developer idea and I certainly don't mean a mallized street. Is there anyway to think outside the box? I was talking with one of the principals who did the initial H Street study for OP and as we talked about retail, he stated that the general wish is now for individual interesting businesses, he mentioned 14th Street. How does an area like the Pearl happen in Portland, Oregon? Richard,do you have any idea? There must be some city involvement, some master plan to support entreprenurial small businesses? But that would also be asking alot of DC. DC is so far behind the curve that the city would well to hire someone with a global(way of thinking), visionary thought process that looks far down the road for a road map.
I have always wondered about what Richard Layman just described....everybody in charge and no one in charge. The generation of one report/study after another and still no progress. Has anyone ever talked with someone who is starting up a business or has owned a small business in this city? It seems like things are made very difficult here.....on every level. And while I'm sure we all appreciate what Englert has done, let's be honest, liqour is one of the ways that makes it relatively easy to pay the rents and be profitable(along with lobbying and lawyers). Nobody wants to deal with a retail tennant.
Thanks for the very informative post, which really lays out a very realistic view of the situation.
I've never owned a retail or commercial business in DC, but I know plenty of people that have.
Let's put it in simple terms. It'd be FAR easier to open a business in most suburbs rather than here in DC.
The biggest thing with doing business in DC is the uncertainty. Yes, the local govt is inefficient. But far worse is that you simply can't predict what they are going to do. There are govt regs for most things, but those are often ignored because of political, racial, class issues, etc.
In short, it's a crapshoot. Often business owners do all their research and start a business only to find that some DC agency interprets things basically 'out of their butt' and makes things difficult for no obvious reason.
There are still far too many arbitrary decisions from various DC personnel, far too many 'lost documents', far too many examples of DC personnel making different rules for different people, and far too many examples of sheer indifference on the part of DC personnel.
Add to that the fact that you've got other uncertainties, like crime, a very unreliable workforce (this is a HUGE problem in DC.... overall there simply isn't a culture of good customer service in DC), and a fickle public..... it's a small miracle that any new business starts in DC.
Then there's the recent increase in property taxes. Some commercial taxes have tripled in the last three years. That is going to kill a lot of small businesses in DC. It's a stunning tax hike that has gone basically unchallenged, which is unfortunate.
DC is way better to deal with than it was 10 years ago, but it's still quite the uphill battle.
That is part of of the reason for so much 'negativity' on the part of the business community in DC. It's not that we're 'negative'. It's more that we are realistic, having seen how it actually works in this town.
I've worked with the city in a variety of ways not relating directly to commercial business. And as much as I like DC I can honestly say that based on my experience and the experiences of those I know I would actually suggest to that anyone wanting to invest or open a small business who couldn't afford to fail spectacularly that they would be probably, statistically speaking, be better off doing it pretty much anywhere other than DC.
That's not to say H Street is doomed. It's just that everything will be a struggle.
Thanks again for another informative post and confirming alot of my own thoughts. Your report echos those who I have talked with about opening businesses here. Is there anyway to forward these posts to Tommy Wells, the whole council? Who is in charge of the Economic Development Committee(Evans?)? I guess this why we all go to the suburbs(or another city) if we want interesting product.
Hillman kills me. He always says, "I don't know about this.....but" and then goes on to make negative comments about stuff he admits he doesn't know anything about. The trend is really obvious on this website. Everyone should take this "knows nothing's" comments with a tablespoon of salt.
please cease the personal attacks. if you disagree with something in hillman's post, directly address what you disagree with and support your argument as best as you can.
ad hominem attacks have no place on this generally congenial board. esp. when they're semi-anonymous, as i presume your mother did not name you 'you are bad' and it is not even linked to a blog or some other identifier.
To "youarebad"...I don't see anything negative about Hillman's comments, in any way shape or form. In my opinion, they tell a pretty true story about how things have been working.
Have you ever talked with anyone who has tried to open a business here? Have you ever tried yourself? Do you know anyone who works in the private sector in DC(other than lobbyists and lawyers)? Do you know anyone who has worked in the commercial construction or development business? Ever heard any stories? Or have you ever just tried as a private citizen to get something done? Although, on a small scale, I have always had a positive experience, Hillman is only telling it as it generally is.
There is a headset that exists in DC that has not allowed it to move forward. We are starting slowly now, but if you look around, DC is behind. And it's because it just can't execute.
Sometimes I do wonder if perhaps a couple of our fellow neighbors secretly think I snuck in and peed in their free-range cruelty-free cornflakes and their revenge is to make the Frozen Tropics blogging experience unpleasant for me (not that it's all about me, but, you know, it is, right?).
I did intend to lay out the facts as I've experienced them, and as they have been personally relayed to me over and over again in the last dozen years of living on the Hill.
And I meant it also so anyone reading that has never experienced the process can have a truthful (albeit admittedly vague) view of the experience before they try it.
I'll admit I sometimes post things that aren't glowing Chamber of Commerce-type press releases, but, honestly, there's plenty of other folks out there posting positive reviews of the Argonaut's sweet potato fries, so it's sometimes good to have someone that has some real life investment and development experience post an unvarnished view of things. I do try to keep it professional and not attack people personally, as that's almost always counterproductive.
I actually sortof intended the post to be a testament to those that are brave enough to actually open a business in DC. My hat is off to anyone that tries.
There are (at least) two things that make urban commercial district improvement in DC very difficult.
First, the buildings are too expensive and the rents are very high. This is because the city's entire real estate market and tax assessment policies are shaped by the real estate forces that yield downtown and the central business districts.
In other cities, most places like H Street have very low rents. (And the buildings aren't as disinvested.) Instead the asking prices are very very high both to buy and to rent.
The rent metric is that a business should pay no more than 4% (1/25 of sales) to 10% (1/10 of sales) in rent, although restaurants pay up to 15%. (Remember that a typical business only nets 15% after taxes, so every percentage point counts.)
So working backwards you can see what realistic rents would be, given that most businesses are not likely to sell more than $200-$300/s.f. in gross revenue, and most spaces aren't much greater than 2,000 s.f.
I am doing work in a city in Georgia, and in this particular downtown (great building stock, incredibly clean streets and sidewalks, some really top notch businesses, including near fine dining restaurants) the rents are $8-$12/s.f.
On H St. the numbers are $20-$35, but the sales revenue numbers are low, and many of the buildings are in terrible condition, and for the most part the building owners will not provide concessions on rent or build out allowances.
The second problem is that DC has some really lousy entrepreneurs, people not capable of developing complete concepts or robust operational systems. And the people who are particularly good are going to locate where they are likely to be most successful (meaning the NW quadrant most likely). It is the rare quality business that locates in a tertiary spot, unless there are other reasons.
Of course, it's really hard to be truthful with people when they don't get it, and there aren't many opportunities to try to counsel them, etc.
Anyway, my work in the Main Street world is now focusing upon entrepreneurship and business development in a much more focused way. I have a blog entry on a little piece of this yesterday, which discusses complete concepts and identity systems.
But when poorly conceived and operated businesses open and then fail (i.e., Phish Tea), they make revitalization more difficult because people blame the district, not the business operator -- "you just can't make a business work on H Street" -- and this makes it that much more difficult to attract high quality businesspeople and investors.
Quality independent businesses on H St. do include Stella Bleu as mentioned, the coffee shop, the Englert-related establishments, etc. but many others aren't great.
You raise a very valid point, about many DC entrepreneurs not being very good. I was actually going to raise that very point, but when I've been critical of anything H Street related on this blog I am attacked for it, and I have to admit I'm getting tired of the attacks.
For me, a lot of it boils down to customer interaction and customer service, or lack thereof.
Phish Tea was a perfect example. The stories of stunningly indifferent service there are legendary. After a while the only people going were those that desperately supported the business only out of concern for H Street. But after a while even those folks got tired of waiting 30 minutes to see a waiter who then clearly didn't care if you were there or not.
My observation: many businesses on H expect people to pay 'new' H Street prices but get 'old' H Street customer service and quality. This is a problem in DC overall, as neighborhoods revitalize. You'll see someone put in a lot of money into a business, but then the wait staff or customer service staff still think it's fine to be indifferent or rude.
It's an inexact science, but I often judge the seriousness of the business by the condition of the bathroom (if they have one). I'm constantly amazed at how many DC businesses want to charge me a lot of $$ for a beer and a meal, but expect me to use a filthy bathroom that hasn't been updated in decades. That to me says a lot about how they run the rest of their business.
The Hill in particular has a long history of merchants essentially saying 'you'll take what I give you and smile' to their customers. This is changing, but it's changing very slowly.
I stand by my original premise that the stunning uselessness of the DC Govt is a major problem. But you are correct when you say you need a viable business plan with professional execution if you are going to make it.
This is anon 8:48 again. I, along with some other women, looked at opening a home/antique business in the late 90's on the Hill. We ran up against exactly what you explained with rents in relationship to condition of the building and traffic on the street. It was stunning and a real eye opener. The spaces we looked at were a "wreck" and the rents being asked way out of line for the conditions that existed in the city at that time. Ultimately, two of the women opened the shop on upper Wisconsin in G'Town. Rents in G'town were not that different than what we looked at on the Hill(for a whole different scene). You just couldn't make the numbers work for some kind of individual concept. The spaces we looked at became an insurance office, a health care office(or something like that) and then you have the Mattress Discounters in the old McDonald's.
I also concur with the fact that we don't have a pool of, as you say entrpreneurs. I would like to elaborate on that and say "visual" community. Artists, designers and generally creative people who create "product"....and people with that business spark. There is a lack of that spark or gut that makes an exciting retail space. As soon as you step over that District line the air lifts. I'm not sure why we don't attract that community to this city. I have spent 30 years in the fashion/product development business and I will say that in shopping for trends(around the world) one always looked for where the artist and creative neighorhoods were. That's where the new interesting shops were(not where the clubs are....although I don't mean that ctitically). That is what in part has driven a rejuvenation of Philadelphia and currently Berlin. We don't have enough of a population mix in DC. Joe Englert alluded to organized anarchy or creative tension.
I strongly concur with Hillman's comments on the government. In a recent conversation with a business start up owner(on the Hill)...there were stories of dealing with the District and H Street rents were really expensive. And don't get me started on service here.
The bigger question is how do you get over these hurdles? I look at H Street and it could be dynamite, but I'm watching(my interest is the retail) and have wondered about all the things that have been laid out in this thread. It's one thing to designate the middle core as "retail" and then say in the report that the "right mix" will determine it's success. Somehow it needs to be executed. (Sorry for the long post)
Me again...I need to emphasize Richard's comment that in virtually every other city I've ever been in, areas like H Street have low rents. This is why in other cities you usually start to have the accumulation of artists and interesting shops.
Thanks, Richard, for laying out that fact out so clearly.
Hell, I don't think anyone has written on this blog that you have your head up your ass, which has been written about me at least twice as well as other comments -- "I really really don't like you" etc.
It's absolutely true that it's bull when people say that telling the truth to power or just the uninformed is important. It isn't all it's cracked up to be... but I write mostly for me, to help me work through and better understand issues. If others benefit from it too, all the better.
(And I am fully identifiable and reachable in what I write, believe, state, work on [although for the most part, I no longer write too directly about the projects I am most active in] unlike the people who write that s*** about me.
Directness and honesty is in very short supply. Keep the faith. (And also learn how to be direct and still maintain the channels of communication with the people who really do stuff and can get things done.)
Anyway, the points made about what I think of as seeding entrepreneurship and building the pipeline of "producers" are exactly right.
I am working on creating a model for that, in a commercial district in Pittsburgh that also has an industrial section. This area is one of the gaps in the Main Street approach, and in business development for the creation and maintenance of independent businesses generally. (Cities are good at working with big businesses or attracting chains, but not with working with small businesses or independents.)
I'd like to try to do it here, but DC already thinks it is doing it... (that's my take, not theirs).
Oh and when I was on HSMS and attempted to bring attention to the Phish Tea problem, eventually I was criticized for being mean... so what happened was at least $1MM lost in terms of investment, operational losses, and unpaid rent.
Eventually people listen but it takes repeated failures for some of this to sink in. I merely take it all in and continue to build my understanding. (Although it is too bad that it is becoming easier to work on these kinds of projects outside of the city, rather than within the city.)
One more thing about the quality of businesses (and self-censoring).
This is definitely a problem in Brookland where I work now. There are 2 businesses at best that qualify as best in class, one being Yes Grocery. But the pres. of the merchants assn. prattles on and on about how Brookland has everything that is available on Connecticut Ave. (which includes Dupont Circle, Farragut North, Woodley, Cleveland Park, Van Ness, and Chevy Chase Circle...).
And his going on and on about how developers need to buy stuff from the locals (while not talking about competitiveness and value)...
It really has created an entitlement environment on the part of many of the merchants.
And then when I go to the commercial district in PGH, and on three particular blocks you have some of the best organized boutiques with complete identity systems, stores that would be successful in Brooklyn, Manhattan, etc., well it really puts it in perspective.
(Re: PGH, whoever the first person on this blog who mentioned the Strip District, well, you were absolutely right! [And I might do work there too.])
Richard, I'm interested in your thoughts on why those three blocks in PGH have such great stores and the same attitude does not exist in Brookland(or even the Hill).
There was an early entrant boutique opened by a hip young with it person. She located there because the rent was cheaper and the location was still good. And she got some assistance from the local CDC. (Also in that stretch of streets is one of the neighborhood's serial entrepreneurs, a woman now in her 50s, who started 4 businesses--her current is a green materials design firm and store.)
In PGH, Shadyside is the "best" traditional commercial district, like Georgetown, but the rents are very high, and there is little available space. (Ironically, the new owner of the shop has since opened a second store there.) Note that Shadyside has such high demand that on Walnut Street, most of the second floors are used as active retail spaces.
Other young women, attracted by the "complete concept" of Sugar Boutique, decided to open complementary stores nearby.
Like the original boutique owner, they had a lot of skills in design and some business, but not retail, experience.
And they happened into opening excellent stores simultaneously. (There is one exception. A young, under 27 Af-Am woman who went to school in fashion design and merchandising, had some good internships, and managed some high revenue lines for Macy's, she knew what she was doing.)
The point that I made to the commercial district revitalization organization is that they have been lucky, and now the point is to figure out what happened and why, and make it replicable and acceleratable, so you can build stronger critical mass.
You do get some creativity and capability here in DC, but it seems to be pretty rare. Letty Gooch is an exception, and there are others too (Dawn Price Baby, Alvear Studio--I've learned a lot watching them, and talking with them, Forecast, Stella Bleu).
But too often people think they are doing great things and they are really just run of the mill.
That is why I think we need an initiative to build the base of excellence in independent retail. The fact is that over the past 45 years, in a city like DC, the skill set and network have been lost. (E.g., back in the day, most neighborhoods had residents who were retail store owners and proprietors. Not anymore.)
A place like Richmond, VA still has a very active "Retail Merchants Association," an organization now operating statewide. DC and Metropolitan DC doesn't have such an equivalent organization, and it really shows.
Thanks for your explanation. It certainly is the way I am used to things working and I am always trying to figure out why it doesn't work that way here.
What are the goals of the Retail Merchants Assoc. that you speak of in Richmond(I agree that they have lots of little pockets of small interesting shops)?
RMA is a trade assn. they do a lot of training, and lobbying. I think they organized a retail development program with a local community college. they are on the web... but they are focused on retail, mostly on independents. Whereas DC mostly focusing on attracting chains.
And yes, Richmond's Carytown is a fantastic commercial district. I think it is the best relatively independent commercial district between Philly and Richmond.
51 comments:
ugh. hsms, again.
honestly, both are a bit misguided. i say get rid of both, and have a responsible party step in. or just forgoe the whole h street festival.
maybe we're just not ready for folks to cooperate in this part of dc. kinda negative for the new year, but hey, it's happening.
until warring factions can get their shit together, i say forget it.
for the newer area residents, there are a BUNCH of political undercurrents going on here.....
it's not so simple. well, nothing an audit might fix.
I'm a new home owner in the area. I'm not sure what the political undercurrents are you speak of poo poo, but it’s disappointing that an area with so much potential and on the cusp of redevelopment can't get together to help out local merchants.
Typical Poo Poo..........has a nasty comment about the area, but does nothing to help improve it herself.
...about as misguided as someone who sits behind a computer with critical commentary about the community without suggesting any proactive measures? Flourishing neighbourhoods thrive on optimism.
I think good criticism is worthy in and of itself. Not everyone who is a good critic/analyst can offer solutions. Feel free to pillory bad criticism though.
doesn't stating something is wrong imply by negative inference that the speaker knows what something would look like when it's done right?
seriously, saying "until warring factions can get their shit together, i say forget it" is fatalistic.
if anything, i'd say a citizen's group should try to organize a h street festival themselves. i'm willing to help on that: securing sponsors, acts, vendors, etc. anyone interested, let me know.
I don't think Poo Poo's post is negative...tells it like it is. But I have to ask for clarification...we are talking about H Street Main Street not H Street Development Corporation, right?
The post refers to H Street Main Street [HSMS], not to the CDC.
I assume the comments are talking more generally about tensions that can arise between certain interest groups in the neighborhood.
So can anyone shed some light on this? I sometimes confuse the different H Street groups. Which one is the one that's been around forever, responsible for the dreadful public storage building and the other fairly useless 'improvements' of years past?
As someone who had a booth at the festival, I think HSMS may be right to withhold some monies - the "producers" were a disorganized bunch. As a long ago volunteer for HSMS I'd just say that while it could be more effective (a lot more) it's pretty difficult to sucessfully run any kind of organization with only one (low) paid staff member and volunteers (mostly neighbors) and members (merchants) that often have different priorities and different measures of success.
For the record, the H Street CDC is the development corporation that everyone loves to hate and the HSMS is basically a merchants association.
i didn't say negative, i said fatalistic. and how would you define the phrase 'until warring factions can get their shit together, i say forget it', oh dear anonymous @ 10pm?
how about 'maybe we're just not ready for folks to cooperate in this part of dc.'?
that doesn't strike you as fatalistic?
here, let me help:
http://dictionary.reference.com/browse/fatalistic
there's a lot more that residents can do about the h street festival other than throw their hands in the air.
To build slightly on 11:38's comment, HSMS is basically a merchant's association [that's how it started] that, in theory, follows a particular frame work being followed in communities across the country. HSMS doesn't build things, it's basic function is more in improving the corridor by informing merchants about loans that may be available, and in doing thing along the lines of promoting the corridor. Hence the festival. And yes, unlike the CDC, HSMS is basically volunteer driven.
The CDC, has built some stuff on H Street, like the government building across from the self-storage. My understanding is that many of the projects were carried out using CDBG money awarded by DCHD. I don't think that the CDC had anything to do with the self-storage site. That is just a recycling of an old automotive dealership.
Joe Englert said:
We have built some great momentum on H without taking ANY money from the dc or federal government (but I wouldn't say No to a handout).
I think the farther you stay away from any government that you can, the better off you are.
It takes a village, not a bunch of bureaucrats, policy wonks and true believers in the government teat. A little bit of organized anarchy goes a long way!......
Speaking of "government", has anyone seen or heard from our ANC representative Raphael Marshall lately. He has been MIA and unresponsive to several neighborhood concerns. Does anyone know when the next ANC rep. elections are?
- A Constituent
Unrelated question regarding the neighbourhood -- are there monthly gatherings/happy hours where folks can meet in an apolitical context? The Shaw folks meet at Old Dominion Brewery once a month...is there something similar for we H Street folks?
I don't buy the "we have no money, we rely on volunteers" excuse. Plenty of the MS organizations in DC do a lot more with the same constraints (look at Barracks Row). HSMS is poorly run.
I tried to volunteer to help with fundraising/grant writing over 2 years ago, when the organization still had a decent amount of funding from DC. The executive director at the time was so disorganized I finally gave up. I'm not alone, HSMS has turned off many once eager volunteers. The best solution would be to change the name, and start over with a new board of directors, clean slate.
Regarding ANC representative Raphael Marshall ...
I recently purchased and moved in to the neighborhood. Before I closed on my house, I did a bunch of research on the area (this was a GREAT source of information) and emailed Raphael Marshall a few times. My emails were mainly "Hey, I'm new, want to get involved, blah blah blah. Please let me know what I can do, blah blah blah." He never responded to me once.
I was on the Board at my former condo association and I routinely responded to new home owners like that. Its a great chance to meet people and bring the community together. I was extremely disappointed that my first 'interaction' with my new ANC was ignored. What kind of community leader is that?
If you live in ANC6A and have been unsuccessful in making direct contact with your ANC representative, try contacting him/her in the open, e.g. on the ANC6A mailing list.
http://groups.yahoo.com/group/anc-6a/
To Soul Searcher(this is anon 10pm), for some reason your post wasn't up when I posted...I wasn't responding to you, but....I hope you have had an opportunity to read the posts that have come after yours. I would suggest a better word is "realistic". I've lived on the Hill for over 20 years...you gain some insight after that length of time. Instead of just being able to get things done...there is always politics involved.
Just some info...I am of the impression that Barracks Row operates differently and wondered if anyone had any information on that. I just met two days ago the person who was "hired" to do their promotions. They obviously have the ability to have a payed staff. Is the director of HSMS a fully paid position that is full time or is this a volunteer position?
Anon 1:48pm, sorry to hear that as a new resident you too have not heard from Raphael. If he were the least bit interested in keeping his position he would be much more responsive to his constituents.
Can anyone tell me when the ANC Representatives are up for re-election? Anon 1:48, maybe you would consider running with your Condo Board experience you're probably more qualified than some.
Raphael, is a nice guy, but he's not a good ANC Representative. He said one time in a SMD meeting that he was elected "unanimously". If I have my history correct (Inked, maybe you or someone can verify), Raphael was elected during a special election to fill in for a corrupt representative. He was elected unanimously: There was no oppostion and something like 72 people voted. I don't think he would be difficult to defeat, if in fact he is still interested in his postion. Based on his response to his constiuents, it doesn't seem that he is.
Two years ago HSMS Executive Director was the only paid position. At the time she told me the grant from the city would be halved every year until it phased out (in 2007 or 2008 maybe), and wouldn't be enough to pay even one salary in the final year. The last 990 form available online is 2005, so they may or may not have any paid staff today.
Barracks Row Main Street is so different from all the other programs. For one, it was founded three years before the city program was started. For another, it was started in a part of the city that has tremendous social and organizational capital--meaning strong local organizations--leaders, and access to funding sources that typical programs do not have--i.e., a bunch of federal earmarks have gone their way. Even so, they scrape for money. Imagine how hard it is in areas without the same level of resources, and without the same level of history and experience of different groups working together, i.e., CHRS was created in part to fight a freeway through Capitol Hill in the late 1950s. None of the extant community organizations in "Near Northeast" are much older than the late 1980s. And the area has never had funding resources that were comparable.
To be fair to Anwar in this case, my sympathy-empathy is with him. My understanding is that the Festival organizers want all the "overage" or the excess of the profits over expenses. People complain that Main Street organizations don't have money. This kind of overage is where funding comes from.
Just for the record, Raphael Marshall did not, I repeat did not replace a corrupt official. He replaced someone that merely resigned. Commissioners are not paid, and great demands are made on them by constituents. They often must deal with a very unresponsive city government. Please don't slander them.
Richard, thank you for your information on the Main Street program. My feeling was that H Street did not have the same resources that Barracks Row did. From what I have gleaned the H Street gig is very difficult for all the reasons that you mention. But from what I am picking up just from this thread, the Main Street program seems like a really iffy concept and totally dependent on if the "right" volunteers and enough of them step up to the plate. And then there is the whole organizational/political thing. Why isn't a developer for the whole street just brought in? It seems like with some sort of community road map coupled with professional experience that things would get done instead of all the limping along. Just a naive thought.
did someone slander mr. marshall? i must have missed that post.
No, he's suggesting that they were slandering the person who Mr. Marshall replaced.
HTH.
Anon 5:53 said "Please do not slander 'them'." I do not see it as slander to say someone is not responsive to their constiuents - even if only one, but in this case its becomming many.
Mr. Kimber seems to respond to his constituents through this (and his) blog regularly. It would be nice if Mr. Marshall did the same - or at least returned people's phone calls.
Anon 8:42 -- you're being deliberately obtuse. Please re-read what was written -- the entire thing, so that "them" you're keying on is taken in context.
I agree with you that it's important for ANC Commissioners to be responsive to their constituents, and that it would be good for Mr. Marshall to improve in this regard if the few posts here tell the entire story (an important if).
Raphael Marshall replaced Robyn Holden, who retired because of a strained schedule.
The link in the original post now goes to a generic HSMS page.
Anyone interested in ANC 6A, please visit our website at anc6a.org. We have a handful of very active volunteer committees – dealing with issues ranging from zoning, to liquor licenses, to transportation - and we welcome anyone’s participation.
At our next ANC 6A meeting on January 10, 2008, we will be providing a "snap shot" update on H Street. Our meeting starts at 7:00pm and is held at Miner Elementary School – the 600 block of 15 Street, NE. The following people have confirmed their participation:
Director Moneme and Ms. Karina Ricks from DDOT, will discuss the H Street NE Streetscape project to include status of the contract, tentative construction plans (where will construction start) and the status of ordering the street cars funded in the FY 2008 budget. Time 10 - 12 minute presentation with 5 - 10 minutes of questions and answers.
Mr. Woody, from the Mayor’s office of Economic Development, will provide a short update on the following: (1) Great Streets Neighborhood Retail Priority Area, (2) Target Building Improvements - Corridor Wide and (3) Mixed Use Development Partner to Build a Bigger and Better R. L. Christian Library in a Mixed Use Building. Time 10 - 12 minute presentation with 5 - 10 minutes of questions and answers.
Mr. Saleem, the Director of HSMS, will provide an update on the clean and safe program for H Street and the on-going efforts for the facade improvement program. Time 5 minute presentation with 5 - 7 minutes of questions and answers.
Councilmember Wells and Brown will be on hand to participate as well.
We have also invited the following:
Mr. Barrow, from H Street Main Street has declined to participate, but will be in attendance at the meeting.
Mr. Rappaport, who owns the H Street Connection located at 8th and H Street, NE, has been invited to participate and we are still waiting to see if he will attend the meeting.
For all residents, this will be a good opportunity to meet your Councilmember, the key players on H Street as well as your local ANC representatives.
Regards,
Joseph Fengler, Commission 6A02
Re: Raphael Marshall. I'm sorry to be late to this chain but was away for the holidays. I supported Raphael in his past 2 elections because he was my neighbor and seemed energetic and eager. As mentioned by several others, Raphael has not been seen in quite a while. I live across the street from him and have not seen him in months and that includes at his regularly scheduled meetings. They were the first Wednesday of every month. He announced at the last full ANC meeting (not his individual meeting) that he will reduce the frequency to quarterly (despite monthly meetings being a campaign platform). it is just as well though, his attendance at his own community meetings has been poor. He most recently missed the December meeting (without telling those of us waiting for him in the cold) because of one inch of snow (he lives 100 yards from the meeting place). when I called to ask him where he was, he hung up on me. His attendance at the ANC meetings is not much better. he missed 3 of the last eleven meetings. I can go on about his unresponsiveness.
Long story short, its time to replace Raphael. He is up for election this coming November. I am compiling a list of his missed votes, gathering information from neighbors about how he has unresponsiveness, and trying to get a list of people who are willing to work to replace Raphael. We need a willing candidate though. We simply cannot let Raphael run unopposed again. (Note: still was not a unanimous vote. There were 11 write in votes against) If you live in ANC6a01 and want to help or know a strong candidate, please email me at waynedangelo@hotmail.com.
-Wayne
10&I NE
Chris,
Here is what was in the original link:
Pending the resolution of a dispute with H Street Main Street (HSMS), regarding compensation for allowing HSMS to have their name associated with the H Street Music Festival and Bazaar, as well as ownership of the web domain hstreet.org, this web address will no longer host its previous content and design.
Kwasi Frye and Raphael Marshall (R/K Productions) have organized and produced the H Street Festival since 2004. During this period, R/K productions have, in good faith, produced this festival for the betterment of the H-Street corridor. However, despite the professional and highly successful festivals produced by R/K productions, HSMS has refused to abide by the terms of a mutually agreed upon contract. In short, HSMS is refusing to pay R/K Productions for the innumerable hours of work that was put into the production of the festival. This is morally wrong, and violates the basic terms of the agreement. R/K production is committed to ensuring the future success of the H-Street Festival and will not bow down to the petty antics of HSMS. We ask that you join us in this effort.
If you have pertinent questions about the corridor, we suggest you peruse the best source of information about H Street, NE Washington DC. http://frozentropics.blogspot.com
The web domain HStreet.org will continue to provide the business directory, as it is a useful tool for corridor residents; the online directory was conceived by Kwasi Frye (the site owner, the site designer and the webmaster). You can add your business instantly to the directory. If you are interested in making this site a great tool for the H Street corridor, please send your suggestions here: suggestions@hstreet.org. If you are interested in purchasing this web address send an inquiry here: hstreet.orgforsale@hstreet.org.
Well, Main Street is a difficult concept to work right, you need cooperation from many different stakeholders, and there has never been enough funding, until now, to try to make it work.
Then there are the issues of who is allowed to contribute and shape the agenda. That is contentious in all neighborhoods, not just H Street. (I write quite a bit about all these issues in my blog and won't bore you with links.)
This is complicated by the fact that most properties are owned by people not in the neighborhood (that is one of the reasons commercial district improvement lags residential district improvement).
That the city government isn't on the same page with commercial district revitalization -- in other words, every agency does its own thing (well, DC Office of Planning and DDOT are on the same page, while DCRA, zoning regulations generally, DPW sometimes although I think they do a decent job, MPD, and DHCD are on different pages).
Even the agencies that have it together don't always understand how things work at the level of block by block.
Then there is the business owner piece. Many businesses don't create great concepts or offer the right value. Phish Tea is a perfect example. This slows improvement, because you need to see success to attract other business creators-investors. Related to this, imo Joe Englert's involvement has probably speeded up improvement by at least 5 years. Imagine H Street and an improved Atlas Theater and how it would be dead without the places he has brought to the corridor. (This is the kind of linkage that is necessary but rarely done in commercial district revitalization, which is why it takes so long.)
Even in the best of circumstances, commercial district revitalization is hard and takes a long time.
But I do disagree with the idea of a master developer. If you believe that H Street's competitive advantage rests in its authenticity, likely a master developer would crush that, making the corridor up to be more like H Street Connection.
Finally, another difficult thing that H St. has to deal with is the competitiveness of the H St. CDC vis-a-vis more ground up prespectives. The CDC was charged to implement projects based on the Urban Renewal Plan, which has a much different orientation than a Main Street program. But even in the worst of times, the CDC was always far better funded than the Main Street program has ever been.
Richard Layman's post almost makes H Street seem like a hopeless proposition or at the very least a very loooooong haul. I posted with the developer idea and I certainly don't mean a mallized street. Is there anyway to think outside the box? I was talking with one of the principals who did the initial H Street study for OP and as we talked about retail, he stated that the general wish is now for individual interesting businesses, he mentioned 14th Street. How does an area like the Pearl happen in Portland, Oregon? Richard,do you have any idea? There must be some city involvement, some master plan to support entreprenurial small businesses? But that would also be asking alot of DC. DC is so far behind the curve that the city would well to hire someone with a global(way of thinking), visionary thought process that looks far down the road for a road map.
I have always wondered about what Richard Layman just described....everybody in charge and no one in charge. The generation of one report/study after another and still no progress. Has anyone ever talked with someone who is starting up a business or has owned a small business in this city? It seems like things are made very difficult here.....on every level. And while I'm sure we all appreciate what Englert has done, let's be honest, liqour is one of the ways that makes it relatively easy to pay the rents and be profitable(along with lobbying and lawyers). Nobody wants to deal with a retail tennant.
Thanks for the very informative post, which really lays out a very realistic view of the situation.
I've never owned a retail or commercial business in DC, but I know plenty of people that have.
Let's put it in simple terms. It'd be FAR easier to open a business in most suburbs rather than here in DC.
The biggest thing with doing business in DC is the uncertainty. Yes, the local govt is inefficient. But far worse is that you simply can't predict what they are going to do. There are govt regs for most things, but those are often ignored because of political, racial, class issues, etc.
In short, it's a crapshoot. Often business owners do all their research and start a business only to find that some DC agency interprets things basically 'out of their butt' and makes things difficult for no obvious reason.
There are still far too many arbitrary decisions from various DC personnel, far too many 'lost documents', far too many examples of DC personnel making different rules for different people, and far too many examples of sheer indifference on the part of DC personnel.
Add to that the fact that you've got other uncertainties, like crime, a very unreliable workforce (this is a HUGE problem in DC.... overall there simply isn't a culture of good customer service in DC), and a fickle public..... it's a small miracle that any new business starts in DC.
Then there's the recent increase in property taxes. Some commercial taxes have tripled in the last three years. That is going to kill a lot of small businesses in DC. It's a stunning tax hike that has gone basically unchallenged, which is unfortunate.
DC is way better to deal with than it was 10 years ago, but it's still quite the uphill battle.
That is part of of the reason for so much 'negativity' on the part of the business community in DC. It's not that we're 'negative'. It's more that we are realistic, having seen how it actually works in this town.
I've worked with the city in a variety of ways not relating directly to commercial business. And as much as I like DC I can honestly say that based on my experience and the experiences of those I know I would actually suggest to that anyone wanting to invest or open a small business who couldn't afford to fail spectacularly that they would be probably, statistically speaking, be better off doing it pretty much anywhere other than DC.
That's not to say H Street is doomed. It's just that everything will be a struggle.
Thanks again for another informative post and confirming alot of my own thoughts. Your report echos those who I have talked with about opening businesses here. Is there anyway to forward these posts to Tommy Wells, the whole council? Who is in charge of the Economic Development Committee(Evans?)? I guess this why we all go to the suburbs(or another city) if we want interesting product.
Hillman kills me. He always says, "I don't know about this.....but" and then goes on to make negative comments about stuff he admits he doesn't know anything about. The trend is really obvious on this website. Everyone should take this "knows nothing's" comments with a tablespoon of salt.
please cease the personal attacks. if you disagree with something in hillman's post, directly address what you disagree with and support your argument as best as you can.
ad hominem attacks have no place on this generally congenial board. esp. when they're semi-anonymous, as i presume your mother did not name you 'you are bad' and it is not even linked to a blog or some other identifier.
To "youarebad"...I don't see anything negative about Hillman's comments, in any way shape or form. In my opinion, they tell a pretty true story about how things have been working.
Have you ever talked with anyone who has tried to open a business here? Have you ever tried yourself? Do you know anyone who works in the private sector in DC(other than lobbyists and lawyers)? Do you know anyone who has worked in the commercial construction or development business? Ever heard any stories? Or have you ever just tried as a private citizen to get something done? Although, on a small scale, I have always had a positive experience, Hillman is only telling it as it generally is.
There is a headset that exists in DC that has not allowed it to move forward. We are starting slowly now, but if you look around, DC is behind. And it's because it just can't execute.
Thanks for sticking up for me, fellow neighbors.
Sometimes I do wonder if perhaps a couple of our fellow neighbors secretly think I snuck in and peed in their free-range cruelty-free cornflakes and their revenge is to make the Frozen Tropics blogging experience unpleasant for me (not that it's all about me, but, you know, it is, right?).
I did intend to lay out the facts as I've experienced them, and as they have been personally relayed to me over and over again in the last dozen years of living on the Hill.
And I meant it also so anyone reading that has never experienced the process can have a truthful (albeit admittedly vague) view of the experience before they try it.
I'll admit I sometimes post things that aren't glowing Chamber of Commerce-type press releases, but, honestly, there's plenty of other folks out there posting positive reviews of the Argonaut's sweet potato fries, so it's sometimes good to have someone that has some real life investment and development experience post an unvarnished view of things. I do try to keep it professional and not attack people personally, as that's almost always counterproductive.
I actually sortof intended the post to be a testament to those that are brave enough to actually open a business in DC. My hat is off to anyone that tries.
There are (at least) two things that make urban commercial district improvement in DC very difficult.
First, the buildings are too expensive and the rents are very high. This is because the city's entire real estate market and tax assessment policies are shaped by the real estate forces that yield downtown and the central business districts.
In other cities, most places like H Street have very low rents. (And the buildings aren't as disinvested.) Instead the asking prices are very very high both to buy and to rent.
The rent metric is that a business should pay no more than 4% (1/25 of sales) to 10% (1/10 of sales) in rent, although restaurants pay up to 15%. (Remember that a typical business only nets 15% after taxes, so every percentage point counts.)
So working backwards you can see what realistic rents would be, given that most businesses are not likely to sell more than $200-$300/s.f. in gross revenue, and most spaces aren't much greater than 2,000 s.f.
I am doing work in a city in Georgia, and in this particular downtown (great building stock, incredibly clean streets and sidewalks, some really top notch businesses, including near fine dining restaurants) the rents are $8-$12/s.f.
On H St. the numbers are $20-$35, but the sales revenue numbers are low, and many of the buildings are in terrible condition, and for the most part the building owners will not provide concessions on rent or build out allowances.
The second problem is that DC has some really lousy entrepreneurs, people not capable of developing complete concepts or robust operational systems. And the people who are particularly good are going to locate where they are likely to be most successful (meaning the NW quadrant most likely). It is the rare quality business that locates in a tertiary spot, unless there are other reasons.
Of course, it's really hard to be truthful with people when they don't get it, and there aren't many opportunities to try to counsel them, etc.
Anyway, my work in the Main Street world is now focusing upon entrepreneurship and business development in a much more focused way. I have a blog entry on a little piece of this yesterday, which discusses complete concepts and identity systems.
But when poorly conceived and operated businesses open and then fail (i.e., Phish Tea), they make revitalization more difficult because people blame the district, not the business operator -- "you just can't make a business work on H Street" -- and this makes it that much more difficult to attract high quality businesspeople and investors.
Quality independent businesses on H St. do include Stella Bleu as mentioned, the coffee shop, the Englert-related establishments, etc. but many others aren't great.
Richard:
You raise a very valid point, about many DC entrepreneurs not being very good. I was actually going to raise that very point, but when I've been critical of anything H Street related on this blog I am attacked for it, and I have to admit I'm getting tired of the attacks.
For me, a lot of it boils down to customer interaction and customer service, or lack thereof.
Phish Tea was a perfect example. The stories of stunningly indifferent service there are legendary. After a while the only people going were those that desperately supported the business only out of concern for H Street. But after a while even those folks got tired of waiting 30 minutes to see a waiter who then clearly didn't care if you were there or not.
My observation: many businesses on H expect people to pay 'new' H Street prices but get 'old' H Street customer service and quality. This is a problem in DC overall, as neighborhoods revitalize. You'll see someone put in a lot of money into a business, but then the wait staff or customer service staff still think it's fine to be indifferent or rude.
It's an inexact science, but I often judge the seriousness of the business by the condition of the bathroom (if they have one). I'm constantly amazed at how many DC businesses want to charge me a lot of $$ for a beer and a meal, but expect me to use a filthy bathroom that hasn't been updated in decades. That to me says a lot about how they run the rest of their business.
The Hill in particular has a long history of merchants essentially saying 'you'll take what I give you and smile' to their customers. This is changing, but it's changing very slowly.
I stand by my original premise that the stunning uselessness of the DC Govt is a major problem. But you are correct when you say you need a viable business plan with professional execution if you are going to make it.
This is anon 8:48 again. I, along with some other women, looked at opening a home/antique business in the late 90's on the Hill. We ran up against exactly what you explained with rents in relationship to condition of the building and traffic on the street. It was stunning and a real eye opener. The spaces we looked at were a "wreck" and the rents being asked way out of line for the conditions that existed in the city at that time. Ultimately, two of the women opened the shop on upper Wisconsin in G'Town. Rents in G'town were not that different than what we looked at on the Hill(for a whole different scene). You just couldn't make the numbers work for some kind of individual concept. The spaces we looked at became an insurance office, a health care office(or something like that) and then you have the Mattress Discounters in the old McDonald's.
I also concur with the fact that we don't have a pool of, as you say entrpreneurs. I would like to elaborate on that and say "visual" community. Artists, designers and generally creative people who create "product"....and people with that business spark. There is a lack of that spark or gut that makes an exciting retail space. As soon as you step over that District line the air lifts. I'm not sure why we don't attract that community to this city. I have spent 30 years in the fashion/product development business and I will say that in shopping for trends(around the world) one always looked for where the artist and creative neighorhoods were. That's where the new interesting shops were(not where the clubs are....although I don't mean that ctitically). That is what in part has driven a rejuvenation of Philadelphia and currently Berlin. We don't have enough of a population mix in DC. Joe Englert alluded to organized anarchy or creative tension.
I strongly concur with Hillman's comments on the government. In a recent conversation with a business start up owner(on the Hill)...there were stories of dealing with the District and H Street rents were really expensive. And don't get me started on service here.
The bigger question is how do you get over these hurdles? I look at H Street and it could be dynamite, but I'm watching(my interest is the retail) and have wondered about all the things that have been laid out in this thread. It's one thing to designate the middle core as "retail" and then say in the report that the "right mix" will determine it's success. Somehow it needs to be executed.
(Sorry for the long post)
Me again...I need to emphasize Richard's comment that in virtually every other city I've ever been in, areas like H Street have low rents. This is why in other cities you usually start to have the accumulation of artists and interesting shops.
Thanks, Richard, for laying out that fact out so clearly.
Hillman, you write:
I have to admit I'm getting tired of the attacks.
Hell, I don't think anyone has written on this blog that you have your head up your ass, which has been written about me at least twice as well as other comments -- "I really really don't like you" etc.
It's absolutely true that it's bull when people say that telling the truth to power or just the uninformed is important. It isn't all it's cracked up to be... but I write mostly for me, to help me work through and better understand issues. If others benefit from it too, all the better.
(And I am fully identifiable and reachable in what I write, believe, state, work on [although for the most part, I no longer write too directly about the projects I am most active in] unlike the people who write that s*** about me.
Directness and honesty is in very short supply. Keep the faith. (And also learn how to be direct and still maintain the channels of communication with the people who really do stuff and can get things done.)
Anyway, the points made about what I think of as seeding entrepreneurship and building the pipeline of "producers" are exactly right.
I am working on creating a model for that, in a commercial district in Pittsburgh that also has an industrial section. This area is one of the gaps in the Main Street approach, and in business development for the creation and maintenance of independent businesses generally. (Cities are good at working with big businesses or attracting chains, but not with working with small businesses or independents.)
I'd like to try to do it here, but DC already thinks it is doing it... (that's my take, not theirs).
Oh and when I was on HSMS and attempted to bring attention to the Phish Tea problem, eventually I was criticized for being mean... so what happened was at least $1MM lost in terms of investment, operational losses, and unpaid rent.
Eventually people listen but it takes repeated failures for some of this to sink in. I merely take it all in and continue to build my understanding. (Although it is too bad that it is becoming easier to work on these kinds of projects outside of the city, rather than within the city.)
One more thing about the quality of businesses (and self-censoring).
This is definitely a problem in Brookland where I work now. There are 2 businesses at best that qualify as best in class, one being Yes Grocery. But the pres. of the merchants assn. prattles on and on about how Brookland has everything that is available on Connecticut Ave. (which includes Dupont Circle, Farragut North, Woodley, Cleveland Park, Van Ness, and Chevy Chase Circle...).
And his going on and on about how developers need to buy stuff from the locals (while not talking about competitiveness and value)...
It really has created an entitlement environment on the part of many of the merchants.
And then when I go to the commercial district in PGH, and on three particular blocks you have some of the best organized boutiques with complete identity systems, stores that would be successful in Brooklyn, Manhattan, etc., well it really puts it in perspective.
(Re: PGH, whoever the first person on this blog who mentioned the Strip District, well, you were absolutely right! [And I might do work there too.])
Richard, I'm interested in your thoughts on why those three blocks in PGH have such great stores and the same attitude does not exist in Brookland(or even the Hill).
"It was a fluke."
There was an early entrant boutique opened by a hip young with it person. She located there because the rent was cheaper and the location was still good. And she got some assistance from the local CDC. (Also in that stretch of streets is one of the neighborhood's serial entrepreneurs, a woman now in her 50s, who started 4 businesses--her current is a green materials design firm and store.)
In PGH, Shadyside is the "best" traditional commercial district, like Georgetown, but the rents are very high, and there is little available space. (Ironically, the new owner of the shop has since opened a second store there.) Note that Shadyside has such high demand that on Walnut Street, most of the second floors are used as active retail spaces.
Other young women, attracted by the "complete concept" of Sugar Boutique, decided to open complementary stores nearby.
Like the original boutique owner, they had a lot of skills in design and some business, but not retail, experience.
And they happened into opening excellent stores simultaneously. (There is one exception. A young, under 27 Af-Am woman who went to school in fashion design and merchandising, had some good internships, and managed some high revenue lines for Macy's, she knew what she was doing.)
The point that I made to the commercial district revitalization organization is that they have been lucky, and now the point is to figure out what happened and why, and make it replicable and acceleratable, so you can build stronger critical mass.
You do get some creativity and capability here in DC, but it seems to be pretty rare. Letty Gooch is an exception, and there are others too (Dawn Price Baby, Alvear Studio--I've learned a lot watching them, and talking with them, Forecast, Stella Bleu).
But too often people think they are doing great things and they are really just run of the mill.
That is why I think we need an initiative to build the base of excellence in independent retail. The fact is that over the past 45 years, in a city like DC, the skill set and network have been lost. (E.g., back in the day, most neighborhoods had residents who were retail store owners and proprietors. Not anymore.)
A place like Richmond, VA still has a very active "Retail Merchants Association," an organization now operating statewide. DC and Metropolitan DC doesn't have such an equivalent organization, and it really shows.
Thanks for your explanation. It certainly is the way I am used to things working and I am always trying to figure out why it doesn't work that way here.
What are the goals of the Retail Merchants Assoc. that you speak of in Richmond(I agree that they have lots of little pockets of small interesting shops)?
RMA is a trade assn. they do a lot of training, and lobbying. I think they organized a retail development program with a local community college. they are on the web... but they are focused on retail, mostly on independents. Whereas DC mostly focusing on attracting chains.
And yes, Richmond's Carytown is a fantastic commercial district. I think it is the best relatively independent commercial district between Philly and Richmond.
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