Techworld Development Corp. v. D.C. Preservation League

648 F. Supp. 106, 1986 U.S. Dist. LEXIS 21851
CourtDistrict Court, District of Columbia
DecidedAugust 5, 1986
DocketCiv. A. 86-0252, 86-0266 and 86-0837
StatusPublished
Cited by13 cases

This text of 648 F. Supp. 106 (Techworld Development Corp. v. D.C. Preservation League) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Techworld Development Corp. v. D.C. Preservation League, 648 F. Supp. 106, 1986 U.S. Dist. LEXIS 21851 (D.D.C. 1986).

Opinion

MEMORANDUM

BRYANT, Senior District Judge.

BACKGROUND

The present action arises from the attempt of a group of real estate developers, including International Developers, Inc., Techworld Realty, Inc., Techworld Development Corp., and FF Realty Corp., to create Techworld. Techworld is a proposed International Trade Center for high technology and information industries, in downtown Washington. It will include 700,000 square feet of showrooms, a conference center with 150,000 square feet of meeting space, a 800 room convention hotel, 70,000 square feet of retail, restaurant and public service facilities, underground loading facilities, and a garage for 2,000 cars.

The project will be located on two city blocks on the south side of Mt. Vernon Square, between Seventh and Ninth Streets and K and I Streets, Northwest Washington. The portion of Eighth Street running through the middle of the project will be converted to a pedestrian plaza with shops and restaurants. Approximately 75 feet above this plaza a five-story bridge will connect the top five stories of the main structures on either side of Eighth Street, unifying the entire project into one large building. The entire building is planned to rise to a height of 130 feet.

In order to realize their conception of integrating Eighth Street into Techworld, the developers sought to have it closed by the city of Washington, and to have title to the street transferred to them. Title to Eighth Street was vested in the United States government. The Street and Alley Closing Procedures Act of 1982 (the “ ’82 Act”), D.C.Code § 7-421, et seq. (1985 Supp.), provides a mechanism whereby the D.C. City Council may be petitioned to pass legislation closing streets in the city and transferring title. Pursuant to the ’82 Act, the developers filed an application with the Surveyor of the District of Columbia to close Eighth Street between I and K Streets, and an alley on the Techworld site. The Surveyor solicited comments from a *109 broad spectrum of city agencies, including the Fire and Police Departments, the Department of Environmental Services, the Office of Planning, and the Department of Housing and Community Development. Each of these groups reviewed the proposal and, recommended the Council grant the application. The National Capital Planning Commission, a federal agency, also approved the street closing. The Historic Preservation Review Board opposed.

These agencies made several suggestions as to limitations and conditions which should be placed on the developers, to insure the street closing would be advantageous to the city. Apparently in response to some of the concerns raised, the City Council imposed five covenants to run with Eighth Street, as a condition to the closing. The Council demanded an easement for emergency vehicles, a 45,000 square feet easement for pedestrian circulation, and another easement to preserve the view between along Eighth Street and the Carnegie Library at Mt. Vernon Square to the north and the Museum of American Arts/National Portrait Gallery to the south. The Council also required the developers to commit themselves to the basic components of the project they had presented, and to install a sprinkler system. At the request of the Council, the developers worked out the language for these covenants together with the D.C. Office of Planning.

In April 1984, Mayor Barry forwarded the application to the City Council. The Council’s Committee on public works held hearings on the application, at which many interested groups expressed their opinions. Included were neighborhood groups from nearby Chinatown, the D.C. Chamber of Commerce, and the University of the District of Columbia. The Deputy Mayor for Economic Development, representing the Mayor’s Office, enthusiastically supported the project, writing that:

We are very exited about this major investment and exciting project in the downtown area. The short and long term benefits of this mixed-use development, the diverse activities and proposed target tenant population make it even more exciting and attractive. This project will enable the District to diversify its economic base and achieve a goal that underlies all of our economic development plans____ I strongly hope this development project and its many beneficial contributions will be able to proceed promptly.

Moore Committee Report, Techworld Group Exhibit 8, at 7.

The Committee found that the project will have a “positive fiscal impact” on the District. It will provide 830 full time jobs during construction, and over 1,300 jobs after completion. (The developers anticipate 6,800 full time jobs will be generated by 1989). Sixty-six percent of these jobs will go to District residents. The Committee also anticipated $22,000,000 in tax revenue for the District during construction, and over $15,000,000 annually thereafter.

In its final report, dated September 26, 1984, the Committee reported favorably on the proposed legislation, and recommended Eighth Street be closed.

In November 1984, the Council voted unanimously to close the street and transfer title to the developers. It passed two acts, the Eighth Street Closing Acts, effecting the closing and transfer. Transfer of title was conditioned upon the developers executing and recording the five covenants previously agreed to. The developers executed and recorded them with the D.C. Recorder of Deeds on November 16. The Mayor signed the Acts on November 29. As required by the District of Columbia Self-Government and Governmental Reorganization Act, D.C.Code § 1-211 et seq., the Eighth Street Closing Acts were forwarded to both houses of Congress for a mandatory 30-day review period. Congress did not exercise its right to veto the legislation, and at the end of the 30 days, the Acts became law.

Throughout these lengthy proceedings leading up to the Eighth Street closing, the developers expressed their intention to apply to the Zoning Commission as a Planned *110 Unit Development (“P.U.D.”). P.U.D. approval allows a structure to exceed or otherwise vary from the regulatory limits established in zoning regulations. The developers specifically sought Zoning Commission authorization to exceed the regulatory density limits, and to obtain a waiver of the set-back requirement fronting on Mt. Vernon Square.

Beginning November 1984, the Commission held extensive hearings on the P.U.D. application. The Commission granted the application, but in its June 21 order, it established 37 conditions regarding Tech-world’s use, height, design, employment of minorities, and construction. The Commission required that one-third of Techworld be used as a trade center perpetually, and imposed strict ratios of showroom, display and office floor areas which the developers must employ.

This last condition was especially onerous to the developers, as it interferred with efforts to obtain financing. They therefore withdrew their P.U.D. application, determining to proceed with Techworld under the mandated regulatory zoning limitations, including the proscribed density and set-back limitations.

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Bluebook (online)
648 F. Supp. 106, 1986 U.S. Dist. LEXIS 21851, Counsel Stack Legal Research, https://law.counselstack.com/opinion/techworld-development-corp-v-dc-preservation-league-dcd-1986.