The Case for Compromise: 11th St. Dog Park by Joe Iwaskiw

THE CASE FOR COMPROMISE 11TH ST DOG PARK 11TH ST + PARK RD NW

THE CONFLICT

THE 11TH ST DOG PARK IS BELOVED BY NEIGHBORS, WHO CITE A LACK OF OPEN SPACE AND COMMUNITY GATHERING IN THE NEIGHBORHOOD. 2

COMMUNITY

CITY

0 110 K PAR D ROA 5 735

OWNER (WMATA)

DEVELOPER?

THE PARK IS ZONED AS AN MU-4 AND IS A PRIME LOCATION FOR DEVELOPMENT OF AFFORDABLE HOUSING. THE OWNER (WMATA) HAS WANTED TO SELL THE PROPERTY FOR SOME TIME. THE CITY IS TRYING TO BUY THE PROPERTY TO PRESERVE THE PARK, BUT TENSIONS REMAIN OVER LAND USE. 3

CAN WE SAVE THE PARK AND DEVELOP THE SITE AT THE SAME TIME?

IS THIS A MATTER OF PROFIT VS. COMMUNITY?

OR CAN A COMPROMISE MULTIPLY OUR OPTIONS?

SMALL BUSINESS

DOG PARK

TRANSPORTATION

AESTHETIC

ENERGY + HEALTH

COMMUNITY

AFFORDABLE HOUSING

WEALTH 5

THE CONCEPT

EXISTING THE EXISTING PARK IS MADE UP OF A FENCED IN PLOT WITH A METRO EXHAUST GRATE LOCATED IN THE CENTER. EXISTING CURB CUTS ARE LOCATED TO THE NORTH AND EAST. ALTHOUGH THIS ALLOWS FOR A NICE SIZED DOG PARK, THE SITE IS UNDERUTILIZED IN BOTH ITS PARK DESIGN AND DEVELOPABLE SQUARE FOOTAGE. 6

TYPICAL DEVELOPMENT NEIGHBORS DO NOT WANT THE PARK TO BE DEVELOPED, AND FOR GOOD REASON. A TYPICAL DEVELOPMENT WOULD LEAD TO A REDUCTION OF 75% OF THE CURRENT PARK, AND OTHER SITE AMENITIES WOULD COMPLETELY WIPE OUT THE PARK. ALSO, THE METRO EXHAUST WOULD NEED TO BE RE-LOCATED, FURTHER ADDING INFRASTRUCTURE COST TO THE CITY. THE NEIGHBORHOOD NEEDS SOMETHING ELSE. 7

COMPROMISE WHAT IF WE COULD FLOAT THE ENTIRE BUILDING SO THAT THE PARK AND BUILDING COULD CO-EXIST? METRO COULD KEEP THEIR EXHAUST, THE NEIGHBORHOOD COULD KEEP THEIR PARK, AND THE SITE COULD STILL HOST AFFORDABLE HOUSING AND HELP THE NEIGHBORHOOD BUILD WEALTH. THE DEVELOPER COULD ALSO MAKE THE FINANCING WORK IN THIS SCENARIO. ALL PARTIES COULD GET WHAT THEY WANT BY GIVING UP A LITTLE. 8

CONTEXTUALIZATION COLUMNS AND A BUILDING ENTRANCE WOULD NEED TO BE PLACED TO SUPPORT THE BUILDING, TAKING UP 40% OF THE SITE. 60% OF THE SITE COULD REMAIN AS A PARTIALLY COVERED DOG PARK, DESIGNED BY THE COMMUNITY, WITH INCREASED USABILITY AND AMENITIES. THE CITY WOULD OWN THE PARK, BUT SELL THE AIR RIGHTS TO THE DEVELOPER. THE FINAL PRODUCT INCREASES THE RESOURCES OF THE NEIGHBORHOOD TEN-FOLD. 9

THE PROPOSAL

CORNER OF 11TH AND PARK 11

D A O

R K R PA

1 2 3 4

T STREE

11TH

TWO BED RETAIL SPACE TRASH DOG PARK

1100 PARK ROAD

24,575 SF APARTMENT BUILDING • 25 FOR RENT UNITS • ONE 4-BED • ONE 3-BED • FOUR 2-BEDS • NINETEEN 1-BEDS • ROOFTOP AMENITY + BIKE STORAGE

COMMUNITY AMENITIES

• 3800 SF OF PARTIALLY COVERED DOG PARK • TWO CAR SHARE PARKING SPACES • COMMUNITY INVESTMENT FUND • 615 SF OF RETAIL

CITY GOALS

• THREE DEEPLY AFFORDABLE 30% AMI UNITS • PARK PRESERVATION • RENEWABLE ENERGY

11TH STREET ELEVATION 15

UNIT 4A AMENITY UNIT 1D UNIT 0A

UNIT 1

UNIT 0A

UNIT 1C

UNIT 2A

UNIT 3A

UNIT 1D

UNIT 1

DOG PARK UNIT 1A

RETAIL

ALLEY

METRO EXHAUST SHAFT

20’-0”

PARK ROAD

SECTION PERSPECTIVE 17

5 5

UP UP

2 1

2ND FLOOR

3RD FLOOR

4TH FLOOR

5 5

7 5 5

6 UP

2 1

8 1

6 5 8

5TH FLOOR

1 2 3 4 5 6 7 8

PENTHOUSE FLOOR

TRASH ELEVATOR DOG PARK TWO BED THREE BED ONE BED FOUR BED ROOF AMENITY

AERIAL 21

THE COMPROMISE PARTIES GIVE UP: DEVELOPER LESS PROFIT

-ROI OF 6.5% -NOT MAX OUT FAR/ SQUARE FOOTAGE OF SITE

COMMUNITY LESS DOG PARK

-REMOVE 40% OF CURRENT PARK.

OWNER (WMATA) + CITY GAP FINANCING

-$1 MILLION

LESS OWNERSHIP -OWN 60% OF SITE.

-SELL AIR RIGHTS.

PROJECT RETURNS: (2) CAR SHARE SPACES BIKE STORAGE AND PARKING SOLAR PV PANELS PASSIVE HOUSE TECHNOLOGY GREEN ROOF NATIVE LANDSCAPING BRICK ROWHOUSE CHARACTER TIMBER CLAD CANTILEVER 25 RENTAL OR FOR-SALE UNITS PENTHOUSE AMENITY SPACE 80% UNITS W/ BALCONIES

3 UNITS @ 30% AMI RENT AT $700 A MONTH

COMMUNITY DESIGNED PARK NEIGHBORHOOD INVESTMENT FUND

PARTIALLY COVERED DOG PARK DOG RUN ACCESSORIES ADDITIONAL SEATING

615 SF OF EATERY SPACE TAKE-OUT WINDOW 23

PARK ROAD ELEVATION 24

NEXT STEPS

1. ADVOCATE

• SIGN THE PETITION @ CHANGE.ORG • FOLLOW PROGRESS ON IG @JOEIWASKIW • CONVINCE CITY THIS IS WHAT COMMUNITY WANTS

2. ORGANIZE

• BRING DEVELOPER ON BOARD THAT SHARES THE VISION • PURCHASE LAND FROM WMATA • DISCUSS TERMS OF AGREEMENT IN COMPLETE TRANSPARENCY

3. INVOLVE COMMUNITY • OPEN COMMUNITY INVESTMENT FUND

• IMPLEMENT COMMUNITY DESIGN OF DOG PARK • SET UP ANC MEETINGS TO CONTINUE TRANSPARENCY

4. BUILD TOGETHER 25

1100 PARK ROAD - ZONING ANALYSIS 1100 PARK ROAD NW, Washington DC ZONING SITE AREA ALLOWED FOOTPRINT PER LOT OCCUPANCY LOT OCCUPANCY LOT OCCUPANCY (IZ) MAX HEIGHT (FT) FAR FAR-IZ (+20%) BUILDABLE SF BASED ON FAR PROPOSED GSF

SIDE YARD REAR YARD OPEN COURT (WIDTH) CLOSED COURT (WIDTH) CLOSED COURT (AREA) PENTHOUSE MAX HEIGHT MAX STORIES HABITABLE AREA GREEN AREA RATIO USES: PARKING RESIDENTIAL (MF) UNITS PARKING SPACES REQ. ZONING REDUCTION? (50%) PARKING FINAL REQ. PARKING PROVIDED LOADING LOADING BAY LOADING PLATFORM SERVICE DELIVERY SPACE BICYCLE PARKING SHORT TERM SPACES (1 PER 20) LONG TERM SPACES (1 PER 3)

ALLOWED/REQUIRED MU-4 7,355

PROPOSED -

5,516

5515

0.60 0.75 50'-0" 2.5 3 22,065

0.75 50'-0" 2.94 -

21,571

IF PROVIDED, 2"/FT OF HEIGHT (5' MIN) = 8'-4" 15' (20' FOR PARKING) 4"/FT OF COURT HEIGHT (10' MIN.) 4"/FT OF COURT HEIGHT (15' MIN.) 2 X MIN. WIDTH SQUARED (NOT LESS THAN 350 SF) 12'-0" (15'-0" FOR MECH) 1 (2ND STORY PERMITTED FOR MECH) 0.4 FAR + COMMUNAL REC. SPACE 0.3

8'-4" 20' 11'-0" 1 2251 0.3 RESIDENTIAL + RETAIL

1 PER 3 (AFTER THE FIRST 4) 25 7 Y(.5 MILE FROM METRO) 3.5 2 0 0 0

1.25 8.333333333

2 10

12/1/2020 NOTES

Additional balcony space on North end - go for zoning variance on Lot accupancy (extra 2%)

21,571 sf counts toward FAR + 752 sf in public space + 2,541 at the penthouse = 24,575 sf total of construction

Green Roof + Dog Park

Car Share Spaces (1 per 3)

APPENDIX A: ZONING CHART 27

1100 PARK ROAD - UNIT MIX (BOMA METHOD) Level

Penthouse Level 5 Level 4 Level 3 Level 2 Level 1 Sub-Total Total

Public Space (gsf)

Floor Area (gsf)

( 2,251) ( 5,515) ( 5,515) ( 5,515) ( 2,513) ( 2,513) ( 23,822) ( 24,575)

( ( ( (

251) 251) 251) 753)

0A Gross Unit Area STUDIO (sf) (

512)

( 1,217) ( ( 4,500) ( ( 4,500) ( ( 4,744) ( ( 2,037) ( ( 725) ( ( 17,723) ( ( 17,723) (

- ) 2) 2) - ) - ) - ) 4)

4) 16% 16% STUDIO

1 BED

725

627

634

625

( ( ( ( ( ( (

- ) - ) - ) - ) - ) 1) 1) 4%

( ( ( ( ( ( (

- ) 1) 1) 1) - ) - ) 3) 12%

( ( ( ( ( ( (

- ) - ) - ) 2) - ) - ) 2)

( ( ( ( ( ( (

15 8% 60% 1 BED

- ) 1) 1) 1) - ) - ) 3)

1 BED

2 BED

627

( ( ( ( ( ( (

12%

- ) 2) 2) 2) - ) - ) 6)

( ( ( ( ( ( (

24%

AREA OF MU-4 SITE TOTAL RESID. AREA (FAR)

( (

LOT OCCUPANCY (75% IZ) FAR (3.0 IZ)** not including penthouse or public space

(

RESIDENTIAL PARKING REQUIRED PER ZONING

( ( ( ( ( (

RESIDENTIAL PARKING PROVIDED (Car Share) LONG TERM BIKE PARKING (1/3) SHORT TERM BIKE PARKING (1/20) RESIDENTIAL PARKING RATIO PROVIDED 1: RETAIL SPACE SF

7 21 7

2 BED

3 BED

970 - ) - ) - ) - ) 1) - ) 1)

( ( ( ( ( ( (

4 4% 16% 2 BED

12%

( ( ( ( ( ( (

EFF. HEIGHT

4 BED

1,087 - ) 1) 1) 1) - ) - ) 3)

# of Apts

- ) - ) - ) - ) 1) - ) 1) 1 4% 4% 3 BED

1,217 ( ( ( ( ( ( (

1) - ) - ) - ) - ) - ) 1) 1 ( 4% 4% 4 BED

1 7 7 7 2 1

54% 82% 82% 86% 81% 29% 74%

( 11.00) ( 10.00) ( 10.00) ( 10.00) ( 10.00) ( 10.00) ( 50.00)

25) 100%

7,355) 1,571) 75.0% 2.93) 4) 2) 10) 2) 10.5) 615)

APPENDIX B: UNIT MIX 29

Vacancy Factor (% of GPI)

APPENDIX 3 -PROFORMA

1100 PARK ROAD NW - PROFORMA

#1. MONEY IN UNIT 0A UNIT 1A UNIT 1B UNIT 1C UNIT 1D UNIT 1E UNIT 2A UNIT 2B UNIT 3A UNIT 4A RETAIL

from #1 x Cost per SF)

% of Gross Income

Vacancy Factor (% of GPI)

35%

$40

$983,000

PROJECT FINANCING

$36,249 -$36,249 Subtract the Vacancy Factor $ #6. DEBT SERVICE #7. CALCULATE CASH-ON-CASH RETURN $688,731 Sub-Total is the Gross Operating Income (GOI): $7,144,910 Take your Annual Net Operating Income from #3 Total Project Cost from #4

Assume 25% Equity (down payment) $1,786,228 Subtract your Annual Debt Service from #6 is required in cash and other equity Assumed Loan Amount is 75% of the This produces your Net Annual Income (or Cash Flow after OpEx and $5,358,683 Debt Service): Total Project Cost. This is the Total How much do you have to pay each Divide your Net Annual Income by the 25% Equity number from #6 to $29,785 calculate your return on the Equity; your Cash on Cash Return: month to service that debt? (Assume Multiply Monthly Payment by 12 to -$241,056 $241,056 Subtract the Operating Expenses GOI X 25% OpEx)#8. from #2 $357,424 produce your Annual Debt Service. ESTIMATE ANNUAL DEPRECIATION EXPENSE Divide the Annual NOI by the Annual Multiply the Total Project Cost by .75 as a rough Remainder is the annual Net Operating Income (NOI): $447,675 estimate of the value Debt Service to produce your Debt 1.25 of improvements to the land. Divide the result by 27.5 years to

$447

-$357

$90

$194

PROJECT RETURNS 10 YEAR PROJECTION Quantity 1

from #1 x Cost per SF)

206,430 * Soft Costs (Total SF

24,575

Cost per SF Gross Income $136

Operating Expense NOI

$210

Year 1 Year 2RETURN ONYear 3 Total #5. CALCULATE ESTIMATED PROJECT COST Year 4 2% Take your Annual 688,731 716,556 $447,675 730,887 $1,001,160 NOI from #3 702,506 3%

24,575 0

$40

Net Annual Income Cash on Cash ROI N/A

$386

$983,000

Year 7 2 4

248,288 454,218

255,736 460,820

357,424

90,252

96,795

103,396

110,055

116,771

5.05% Return on 5.42% $0 Product is your Estimated Project Cost $7,144,910

PROJECT FINANCING

263,408 467,479

Year 5 745,505 271,310 474,194

241,056 447,675

$5,160,750 Divide that by your Total Project Cost from #4

Debt Service

from #1 x Cost per SF) 39,320 *

-$ $6

$7,1

Other (Off-site #3. CALCULATE NET OPERATING INCOME Improvement 0 N/A(PGI) from #1 $0 Product is your Estimated Return on Project Cost $724,980Costs) $724,980 Take your Potential Gross Income 285,796 Total Project Cost: $386 $7,144,910

GPI - From #1

Other (Off-site Improvement Costs) 285,796 Total Project Cost:

$724,980 Gross Potential Annual Income - GPI (Monthly Rent x 12 months) 24,575 $210 $5,160,750 Divide that by your Total Project Cost from #4

OPERATING COSTS from #1 x Cost per SF) 39,320 * 24,575

#2. VACANCY AND OPERATING EXPENSES

#4. COST OF BUILDING THE UNIT PROJECT 40,046 Land Cost Hard Costs (Total SF

$36,249 Subtract the Vacancy Factor Sub-Total is the Gross Operating Income (GOI):

Annual Operating Expenses(OpEx); BUILDING REVENUE Insurance, tax, Total Monthly property Rent per Unit Quantity SF per Unit Rent/SF Rent AMI Total SF management, 4 $2,120 512 $4.14 2048 SF $8,480 100% repairs,$2,450 expenses, 1 725 $3.33 725 SF $2,450 120% etc. (% of GPI3 $2,300 627 $3.67 1881 SF $6,900 100% -$2 Vacancy) 35% $241,056 Subtract the Operating Expenses GOI X 25% OpEx) from #2 2 $2,300 634 $3.63 1268 SF $4,600 100% 3 $700 625 $1.12 1875 SF Remainder is the annual $2,100 30% (NOI): Net Operating Income $447 6 $2,300 627 $3.67 3762 SF $13,800 100% 1 $2,800 950 $2.95 950 SF $2,800 100% PROJECT2910 RETURNS 3 $3,300 970 $3.40 SF $9,900 120% #4. COST OF 1 $3,200 1,087 $2.94 1087 SF $3,200 100% BUILDING THE 1 $4,340 1,217 $3.57 1217 SF $4,340 120% PER UNIT PROJECT Quantity Cost per SF Total #5. CALCULATE ESTIMATED RETURN ON PROJECT COST 1 $1,845 615 $3.00 615 SF $1,845 40,046 Land Cost 1 $136 $1,001,160 Take your Annual NOI from #3 $4 Total 16290 SF $60,415 Hard Costs (Total SF 206,430 * Soft Costs (Total SF

Annual Operating Expenses(OpEx); Insurance, tax, property management, repairs, expenses, etc. (% of GPIVacancy)

5.79%

$7,144,910

6.27%6.16%

6.54%

Vacancy)

35%

$241,056

Subtract the Operating Expenses GOI X 25% OpEx) from #2 Remainder is the annual Net Operating Income (NOI):

$36,249 688,731

#4. COST OF BUILDING THE PER UNIT PROJECT 40,046 Land Cost Hard Costs (Total SF

Quantity 1

from #1 x Cost per SF)

7,675

from #1 x Cost per SF)

39,320 *

Other (Off-site Improvement Costs) 285,796 Total Project Cost:

T 447,675

$210

24,575

$40

Total #5. CALCULATE ESTIMATED RETURN ON PROJECT COST $1,001,160 Take your Annual NOI from #3 $447,675 $5,160,750 Divide that by your Total Project Cost from #4

N/A

$386

$0 Product is your Estimated Return on Project Cost $7,144,910

6.27%

PROJECT FINANCING

#7. CALCULATE CASH-ON-CASH RETURN

$7,144,910 Take your Annual Net Operating Income from #3 $1,786,228 Subtract your Annual Debt Service from #6 This produces your Net Annual Income (or Cash Flow after OpEx and $5,358,683 Debt Service): Divide your Net Annual Income by the 25% Equity number from #6 to $29,785 calculate your return on the Equity; your Cash on Cash Return: $357,424

1.25

#8. ESTIMATE ANNUAL DEPRECIATION EXPENSE Multiply the Total Project Cost by .75 as a rough estimate of the value of improvements to the land. Divide the result by 27.5 years to

7,675

$447,675 -$357,424 $90,252 5.05% $194,861

10 YEAR PROJECTION

7,424

Gross Income Operating Expense NOI

0,252

5.05%

2% 3%

Debt Service Net Annual Income

4,861

Year 1 688,731 241,056 447,675

Year 2 702,506 248,288 454,218

Year 3 716,556 255,736 460,820

Year 4 730,887 263,408 467,479

Year 5 745,505 271,310 474,194

Year 6 760,415 279,450 480,965

Year 7 775,623 287,833 487,790

357,424

90,252

96,795

103,396

110,055

116,771

123,541

130,366

Cash on Cash ROI

5.05%

r6 760,415 279,450 480,965

Year 7 775,623 287,833 487,790

Year 8 791,135 296,468 494,667

Year 9 806,958 305,362 501,596

Year 10 823,097 314,523 508,574

357,424

123,541

130,366

137,244

144,172

151,151

6.92%

$7,144,910

$983,000

Total Project Cost from #4 Assume 25% Equity (down payment) is required in cash and other equity Assumed Loan Amount is 75% of the Total Project Cost. This is the Total How much do you have to pay each month to service that debt? (Assume Multiply Monthly Payment by 12 to produce your Annual Debt Service. Divide the Annual NOI by the Annual Debt Service to produce your Debt

6.27%

Cost per SF $136

24,575

#6. DEBT SERVICE

144,910

$447,675

PROJECT RETURNS

206,430 * Soft Costs (Total SF

241,056

-$241,056

7.30%

7.68%

8.07%

8.46%

5.42%

5.79%

6.16%

6.54%

6.92%

7.30%

APPENDIX C: PRO-FORMA 31