A group of developers and commercial tenants is nearly ready to seek D.C. Council approval to turn the area north of Massachusetts Avenue Northeast, or NoMa, into a business improvement district.
If the D.C. Council agrees, it would give the business improvement district, or BID, authority to levy a tax on building owners that would pay for extra cleaning, security and neighborhood improvements within the area bounded by Massachusetts Avenue to the south, Union Station to the east, North Capitol Street to the west and New York Avenue to the north.
The amount of the tax has not been determined.
“We expect to get that BID formalized by the end of the year,” said Bruce Baschuk, president of J Street Development, a developer of NoMa properties.
Mr. Baschuk also is chairman of a steering committee that is organizing the BID. The committee includes representatives of Chevy Chase developer JBG Cos., Bethesda developer Stonebridge Associates, health care company Kaiser Permanente and Morgan Stanley’s real estate investment division.
The committee is drawing inspiration from the Mount Vernon Triangle, a BID adjacent to NoMa.
Mr. Baschuk credits the Mount Vernon Triangle BID with making the area more livable and attractive to commercial tenants. It also makes up for shortcomings in street cleaning and security provided by the D.C. government, he said.
“It’s hard for them to manage these public amenities in a way [residents] would like to see,” he said.
The steering committee has formed a nonprofit organization, called the NoMa Improvement Association, to promote the BID.
Next month, the committee plans to petition NoMa property owners and tenants for support before seeking legislative approval from the D.C. Council.
“We’ll send out a proposed business plan and petitions,” said Robin-Eve Jasper, acting director of the NoMa Improvement Association. “We’ve had very broad, consistent support.”
Organization of a BID is the latest among many efforts to develop nearly 17 million square feet of space north of Massachusetts Avenue in the next few years. More than 1 million square feet of office space is scheduled to be completed there this year, including the 438,000-square-foot Bureau of Alcohol, Tobacco, Firearms and Explosives headquarters at New York and Florida avenues Northeast.
In another project, real estate developer Tishman Speyer has struck an $80 million deal to purchase nearly 3 acres for an office and residential complex at First and L streets Northeast.
Tishman Speyer bought the parcel from J Street Development with plans to turn it into a 700,000-square-foot office building and a 700,000-square-foot residential tower.
In other news …
• First Potomac Realty said this week that it purchased properties in Sterling, Va., and Beltsville for $28.9 million, giving the Bethesda company more than 10 million square feet of industrial and office space in the Mid-Atlantic region.
First Potomac is buying the building at 22446 Davis Drive in the Sterling Park Business Center for $5.4 million. The building offers 52,581 square feet and is 86 percent leased.
In Beltsville, the real estate investment trust acquired a four-building complex at Indian Creek Court for $23.5 million.
Property Lines runs on Thursdays. Call Tom Ramstack at 202/636-3180 or e-mail tramstack@washingtontimes.com.
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