Public Offering Document to Receive Proposals to Develop the McMillan Sand Filter Plant Site Approval Resolution of 1998
PR 12-981

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A PROPOSED RESOLUTION IN THE COUNCIL OF THE DISTRICT OF COLUMBIA

Chairman Cropp, at the request of the Mayor, introduced the following resolution, which was referred to the Committee on Government Operations.

To review and provide comments on an offering document to receive proposals to develop the McMillan Sand Filter Plant Site, located in Ward 5.

RESOLVED BY THE COUNCIL OF THE DISTRICT COLUMBIA, That this resolution may be cited as the "Public Offering Document to Receive Proposals to Develop the McMillan Sand Filter Plant Site Approval Resolution of 1998".

Sec. 2. The Council of the District of Columbia has reviewed and approves the Request for Proposals documents prepared by the District of Columbia Department of Housing and Community Development for the purpose of soliciting development proposals for the McMillan Sand Filter Plant Site, pursuant to Section 3 of the "Disposal of District and Surplus Real Property Amendment Act of 1989" (D.C. Law 8-96).

Sec. 3. The Secretary to the Council of the District of Columbia shall transmit a copy of this resolution, upon its adoption, to the Mayor of the District of Columbia.

Sec. 4. This resolution shall take effect immediately.

Dated: July 20, 1998

COMPETITIVE OFFERING SUMMARY SHEET

REQUEST FOR PROPOSALS DOCUMENT TO SOLICIT DEVELOPMENT PROPOSALS FOR THE MCMILLAN SAND FILTER SITE

I. Description of Property

1. Location : Site is bounded by North Capitol Street, Channing Street, First Street, and Michigan Avenue, N.W.
2. Parcel : Tract No. 133 and portions of tracts No. 134 & 135
3. Ward : 5
4. Size : 25 acres
5. Zoning : Unzoned
6. Value : To be determined by an independent appraisal based on the proposed use of the site.

II. Description of Request for Proposals (RFP) Documents

The RFP documents solicit development proposals that will provide new commercial (retail and office), residential, community and open space uses and meaningful permanent employment in buildings that best complement the scale and appearance of the area. The District anticipates the value of the property at disposition to be determined by an independent appraisal based on the proposed use of the site as leased or purchased. The lease rate or purchase price will be determined by using the current appraised value.

III. Background

On May 15, 1986, the U.S. General Services Administration (GSA) declared the McMillan Reservoir (also known as the McMillan Sand Filter Site) as Surplus Property.

On September 25, 1987, the District of Columbia acquired the McMillan Reservoir Site for $9.3 Million to create a controlled community development that could include commercial mixed-use development, residential development, recreational/community development, and open space.

On October 20, 1989, the Department of Administrative Services (DAS) advertised a "Request for Proposals to Lease the McMillan Sand Filter Site".

On July 30, 1990, the site was transferred by DAS to DHCD to carry out the development of the site.

On September 25, 1990, two proposals were received and evaluated by a DHCD established panel.

On June 30, 1991, a group in Ward 5 (the McMillan Park Committee) brought suit to enjoin the D.C. government from implementing any development plan on the site.

On August 21, 1991, the McMillan Reservoir was designated as a Historic Landmark.

On November 6, 1991, the DAS initiated Request for Proposals was canceled and the good faith deposits were returned to the two applicants.

IV. Project Benefits

The primary benefits that the District of Columbia expects to receive from the development of a successful proposal are:

• the number of construction and permanent jobs to be created, for District residents;
• the amount of tax revenue to be generated by the project;
• the economic impact on the surrounding area;
• other tangible or rion-tangible benefits identified by the successful developer;
• increases in new housing stock, especially for homeownership and special populations, like the elderly and physically challenged individuals;
• opportunities for new commercial services sorely needed in the area, such as grocery stores and other retail uses; and
• space for community uses, such as a police substation or a public library and required open park space.

V. Required Public Action Needed to Carry Out the Project

The nature of this project will require many discussions with local Advisory Neighborhood Commissioners, Community Based Organizations, neighbors, and local government officials. The public actions required to bring this project to fruition are as follows: (1) Release of Request for Proposals to solicit development proposals; (2) Selection of a developer; (3) Negotiation and execution of an Exclusive Right Agreement; (4) Negotiation of a Land Disposition Agreement; (5) Notice and conduction of a Public Hearing; (6) Execution of a Land Disposition Agreement; (7) Approvals by the Historic Preservation Board (site is designated as a Historic Landmark); (8) Approvals required by the Zoning Commission (site is unzoned); and (9) Approval by the District of Columbia Financial Management and Responsibility Authority.

The published legislation also includes the McMillan Sand Filter Site Request for Proposals from the District of Columbia Department of Housing and Community Development.