While some of us continue to argue about if buildings should be 8, 10, 12 or 15 stories on East Washington Avenue, real life tells us a very different story of what is going on in the market.
When the developers of The Colony first presented their project to the neighborhood association, they presented a 7 story building. After the first meeting, and of their own volition, the changed the building to a 5 story building. I asked why at the time, and the response was that the taller building construction was cost prohibitive. The 5 story project was approved in June 2006 and then . . . nothing happened.
The neighborhood association and I were recently contacted and the new proposal is to build a 3 story building. This time it was explained that the reason for the reduction was because the market has changed and it is hard to get pre-sales for financing. And apparently they are not alone in pulling back from building condos. Rumor has it that Union Corners is working on changing some of their plans and that Kennedy Point is still half empty. The Cap Times reports that Capitol West project is now building a hotel instead of condos.
Between high construction costs, a market that isn’t as hot as it used to be, the failed TIF request at 800 East Washington and city staff that discouraged their committee to stop meeting even though a there was significant disagreement and the work wasn’t finished, it becomes less and less likely that there is going to be much at all happening in the East Washington Corridor.
So, our discussion over the East Washington BUILD is seeming more and more academic. It probably doesn’t matter what plan we approve. However, I think we continue to make progress and I am hopeful that we can come up with something that has made this 90 day delay productive.
