Revised 3/7/14 IDEAS TO HELP BLOOMINGDALE RESIDENTS DEVELOP RECOMMENDATIONS FOR McMILLAN COMMUNITY BENEFITS The Bloomingdale Civic

Association hopes this document will spark your imagination and envisioning of the possibilities of the McMillan Park and Community Center and other potential community benefits that might be derived. We welcome your adding to the list. The purpose of the BCA Special Meeting on the McMillan Community Benefits Agreement (CBA) is to: (a) recommend two major principles that might guide the development of the CBA; (b) identify any additional benefits for consideration; and ( c) prioritize the categories of the identified proposed benefits. CRITERIA OF A CBA BENEFIT/AMENITY PER DC STATUTE A benefit shall be tangible and quantifiable A benefit shall be measurable and able to be completed or arranged prior to issuance of a Certificate of Occupancy.

SUGGESTED PRINCIPLES FOR CBA DVELOPMENT 1. Generally, benefits are special efforts targeted to the neighborhood or the city as a whole; amenities are a type of public benefit with specific aesthetic or functional features that add to the attractiveness, convenience or comfort of the developments occupants and adjacent neighbors. Consequently: A. Benefits/amenities provided consistent with law (e.g., 8 - 10% affordable housing) do NOT represent any special benefit to affected communities Percentages need to be significantly higher than those required by law. B. Designation, design and implementation of community benefits should involve collaborative (equal status) efforts among the developer, the City, and the affected communities. C. Amenities included in the final development as approved by the Council will not be considered community benefits/amenities (unless such is specifically noted): instead they shall be construed as development costs of the developer and/or City. D. Benefits/amenities should include a clear designation of the primary party responsible for funding and/or implementing the benefit, for example: 1) Those amenities/benefits that are routinely viewed as the responsibilities of the City and/or developer (e.g., traffic improvements, streets/walkways internal to the development) should specifically be designated as such; 2) Special amenities and benefits that would be paid for through use of a proposed "McMillan Community Amenities Escrow Fund should specifically designated as such along with the primary provider(s) of such funds. -1-

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Before any meaningful discussion occurs among the three major collaborators regarding any specific benefits/amenities their character, appropriateness, and feasibility agreement should first be reached on the financial and administrative structure of such benefits/amenities e.g., (a) how will benefits be both initially funded and sustained over time? (b) the amount and source of both initial and sustaining funding; ( c) structures for administering such funds and monitoring the intended purpose and timing of benefits, etc. Doing so will provide a stellar model for other residential neighborhoods affected by such large-scale development in our ever-changing city. Examples of a few provisions of such financial and administrative structures include: A. DC government might provide initial and sustaining benefits in the form of community center construction and maintenance, ongoing staffing costs and contribution to ongoing programming costs, consistent with costs provided to other DC community/recreation centers of similar size. Other funding streams for community benefits will not supplant such DC contributions. B. Green Door Advisors (2011) estimated that the development will generate at least $1.8 over 30 years for the Neighborhood Investment Fund. Such funds generated by the McMillan Development might be earmarked solely for use in neighborhoods abutting the development. C. Modeled after Anne Arundel Countys Neighborhood Impact Fee on building permits, DC might initiate a Neighborhood Livability Impact Fund on neighborhoods within a one mile radius of the boundaries of the McMillan development, with revenues designated for continuing McMillan Park facilities maintenance and development of public programs and activities of the McMillan Community Center and Park. For example, fees might be 0.25% for new construction permits (i.e., $1250 for a $500,000 project) and 0.20% on renovation projects ((i.e.,$200 for a $100,000 project). D. VMP might provide initial funding for community benefit/amenities through contribution of some fixed amount of its construction costs e.g. assuming construction costs of $700 million dollars, VMP developers upon award of building permits, would deposit 0.50% of construction costs (i.e., an eventual minimum total of $3.5 million not including costs over-runs) into a McMillan Community Benefits Escrow account. E. Similarly, sustainability of community benefits would in part be assured if VMP and/or the developments property manager contributed some agreed upon designated amount of profits (after payment of mortgages, maintenance, insurance, taxes, management costs and fees, etc.) on the sell and rental of McMillan development properties. For example, if that fee were set at 3.0% of profits, and townhouse sales were to generate $15 million in profits, $450,000 would be contributed to the Benefits Escrow Fund; if annual profits of commercial/retail/ residential/ rentals were to total $10 million in a given year, $300,000 of this annual profit would be contributed to the Escrow Fund. F. Various tax credit program and other City and Federal programs might be the source of funding in support of Affordable Housing. -2-

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All funding streams (unless special prohibition of law/regulation exists) would be directed to designated accounts within the McMillan Amenities Escrow Fund, which will be held by the DC Department of Housing & Community Development or the DC Office of the Chief Financial Officer, with expenditures authorized solely by the McMillan Amenities Board. An independent annual audit would be conducted of the Fund. MAG has to date identified the following as possible uses of such an Escrow Fund: (a)Salary ( or fees) for Compliance Monitor; (b) compensation for damage to surrounding homes (need for pre/post inspections) - [Funding of this should be part of developers/contractors liability insurance thus, there may be no need to place funds in escrow for this item] ; ( c) Park/Green area maintenance; (d) Job training; (e) Money for local start-up businesses; (f) Community revitalization and beautification funding The Fund might be administered by a McMillan Amenities Board consisting of representatives of the three major collaborators e.g., two(2) representatives of those ANCs abutting the development; one (1) or two (2) representatives of each Civic Association whose boundaries abut those of the development; two (2) representatives of the Developer or Property Manager; Council members of wards abutting the McMillan development; the Directors of appropriate DC Departments/Agencies e.g., Parks and Recreation, Housing and Community Development, Finance, DCPS, etc.; the Districts General Counsel, two independent Certified Public Accountants (1 representing developer/property manager interests, the other representing community interests). In addition, the Board might also include non-voting advisory members with expertise in such areas as historic preservation, landscape architecture, mixed use property management, public art, financial investment, etc. Administrative support of the Board might be the joint responsibility of the City and Developer/Property Manager. Successful implementation of the McMillan CBA will largely depend on accountability structures and procedures e.g., the proposed McMillan Amenities Board. A second major accountability measure is the contracting of an independent Compliance Monitor responsible for monitoring and evaluating the process and outcomes of the McMillan CBA.

PROPOSED AMENITIES/BENEFITS Housing See APPENDIX 1 for VMPs current affordable housing proposal. See APPENDIX 2 for MAGs current preferred funding options for affordable housing Designation of Number or Percentage of affordable units and units meeting certain AMI standards e.g. -3-

20% of the residential development be set aside for affordable housing units (MAG). Senior housing building -- 80 (affordable housing) units dedicated to +55 and the disabled, having both rent and buy options (MAG). At least 40% of affordable housing units will be reserved for households with incomes of 50% to 65% of AMI. At least 40% of all affordable housing units will be reserved for persons living within 2 miles of the McMillan development.

Equity between Affordable and Market Rate Housing e.g. Affordable housing units will not be segregated within McMillans multifamily buildings, and will include the same amenities and finishes as market-rate units.

Economic Development, Workforce, and Employment Initiative Economic Development Economic Development/Community Investment Corporation/Investment Clubs; Tax Incentives; Public/Private/Municipal Co-ops. Retail Opportunities e.g., Provide funding to North Capitol Main Street to facilitate business start ups and beautification on North Capitol (south of McMillan) Workforce Development: Specific percentage goal for Ward 5 hires, ensuring training, apprenticeship, jobs and fair and consistent wages during and post-construction (e.g., Li LUNA proposal) McMillan Docents and Guides. High school age residents and seniors would be employed on site to provide guided tours of the site and highlight all of the preserved assets. As a program, this would provide part-time employment opportunities for residents while promoting intergenerational interaction and furthering the amplification of historic assets. Funds would support part-time salaries. Additionally, the program could work to create a site-specific repository of oral histories, memorials and other important pieces of neighborhood history. This program could also work to connect seniors in the neighborhood and in the housing with young people working in the program, creating intergenerational relationships and an opportunity for seniors to work onsite, as well. [Could Smithsonian or other nonprofit Agency/organization assume responsibility for training and administration of docent program ??]. Education/Job Readiness Scholarships for community residents . Job creation is a key outcome of the -4-

McMillan effort. Community residents need training to get prepared for these new jobs. Scholarships would be offered across a spectrum and would be connected to getting residents ready to access the medical field jobs that will come to the site. VMP is willing to fund these efforts in two tiers: funding for programs to train med-tech, nursing assistants, and other medical office jobs, via training programs and also to fund degree-seekers who may be entering Junior College or College level education programs. In addition to funding medical office , medical research and medical treatment related careers, VMP is also willing to fund students who want to study fields related to the history and development of the sitefor example civil engineering and landscape architecture. Develop a education service and fund to assist with (college?) applications and testing fees, testing prep, etc, that could help all ages and interests.

Consider annual deposit scholarship and education service funds with DCPS , which might administer these programs -- targeting students in high schools located within 2 miles of McMillan boundaries, and youth and young adult residents of neighborhoods abutting the McMillan development

McMillan Park and Community Center South Service Court and Center design issues e.g. Incorporate the South Service Court into the park (move road on south side of court to north of court ) to enlarge park and enable development of a cultural/museum space Create a Community Market and Art Space : By putting the two way traffic on the north side will get the filtration towers and pump houses out of the traffic median making the structures contiguous with the park. Make Douglas street a cul-de-sac rather than a through street to discourage through traffic along the parks north perimeter. Between the towers and park create a pedestrian walkway in gravel or pebbles (which can alternate as a emergency access road for the community center) that can act as a space for community markets (farmers, holiday) outdoor art installations and an outdoor caf anchored in the existing pump house. Consider re-adapting the filtration towers as storage for caf tables and chairs or hanging gardens and water fountains. Enhance community center entrance with dynamic water features and public art. Install moveable glass partitions at front of community center to allow for air circulation and greater indoor/outdoor continuity.

Community Center Uses e.g: Recreational/multipurpose gymnasium space Community resource center -5-

Community meeting/event space Fully equipped exercise space Child, youth, & adult programming Recreational and therapeutic use of pool

Re-adapt more of the underground cells for community and retail use, e.g.: Open up cell 26 in part or whole to expose the archeological backbone of the McMillan site. The northern half of Cell 26 should be developed into a Museum Park with a similar intimate look/feel as Paddington Reservoir Park in Sydney, leaving the underground vaults partially intact and providing an intimate space for the community to contemplate and appreciate the historical significance of the underground portion complete with its impressive vaulted architecture. Communications elements (either fixed or virtual) can be added to explain the history of the site and celebrate local culture. Have nearby caf area.

Passive Park Uses: Ensure Park includes areas for contemplation and relaxation e.g. Make Olmsted Walk accessible, safe and usable in its entirety for walking, wheelchairs and bikes; put benches along the walk for people to rest. A bike lane would be appropriate to reduce potential hazards to walkers; Develop a shaded picnic area (shelter houses with roofs and open sides, tables, grills) on west side of park with unobstructed views of the reservoir Commission and Install public art throughout the park; designate at least 0.5% of total construction budget for this purpose; restore the entire McMillan fountain and base to its original form and install in a prominent place in the park where it can be enjoyed by all.

Active Park Uses: Ensure the Park incorporates active activities suitable for increasing health & well-being and promoting exercise, e.g.: Enhance the amphitheater with a stage (and associated equipment) appropriate for dancing, concerts, and stage performances; Move amphitheater off of the N. Capitol street entrance of the community center to the interior of the park reducing both ambient traffic noise and transiting foot traffic and providing sufficient space for a useful staging area with a small acoustic band shell and a large outdoor dance floor/stage for community events Develop a childrens playground and spray area with nearby caf area where parents might sit, while supervising children. Increase the size of the community center to incorporate a 50 meter pool and a multipurpose indoor recreation space suitable for basketball, volleyball, -6-

shuffleboard, floor hockey, childrens activities, etc. Ensure at least one of the parks ponds is suitable for use as an ice skating rink. Install grass tennis courts on community center roof. Install miniature golf and putting ranges near , and basketball hoops near community center. Ensure park lawn can be used for football, soccer, and other informal team activities.

Historic Preservation, Beautification and Contributions to Local Community Non-Profits

Historic Preservation Prior to PUD approval, identify specific uses for on-site structures (cells, regulator houses, silos) Consistent with a restoration approach , create a sense of space by increasing park size to 8 acres. Provide historic signage/commemoration throughout site and in abutting neighborhoods

Beautification Bloomingdale is home to several non-profit organizations that directly benefit the community through beautification efforts,. For example, Crispus Attucks Development Corporation, maintains open green space and manages multiple community events in Crispus Attucks Park, a one-acre green space in the heart of Bloomingdale. Designate a percentage of developers annual contribution to McMillan Amenities Escrow Fund for distribution to abutting ANCs for neighborhood/community beautification efforts. Develop an overpass community park to go over the North Capitol underpass between Rhode Island and Seaton Place

Community Event Space in Medical or Mixed-Use Building. Make available upon request a large space, with a view, in either the medical building or mixed used building, for use for large community meetings and events (part of which might also continuously serve as ANC5E office space).

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Traffic/Transportation Management Although the VMP Plan to some extent addresses mitigation related to east /west traffic little mitigation has been addressed related to significant increases in north/south traffic especially on First St., which is a 2-lane street that currently serves as a major collector for the Bloomingdale neighborhoods residential traffic (as well as hospital employee traffic).

Reduce and slow anticipated additional bike, auto and truck traffic on First St., NW (Michigan Avenue to New York Avenue), e.g.:. City should seriously consider installation of mini-roundabouts and placing weight limits on all trucks on this corridor; some contributions to McMillan Benefits Escrow fund might be used to install and maintain appropriate landscaping of the mini-roundabouts, etc. Property Manager and/or its tenants should provide incentives to the developments tenants and their employees to use public transportation e.g., donate space for a Transit Store for sell of Smart Trip cards, student passes, bike and car sharing programs, etc.; partially supplement costs of employee Smart Trip cards and car-sharing; strongly advocate for re-routing of nearby bus routes and upgrading of their scheduling, and initiating rush hour express bus service between development and neighboring Metro stations; seek Restricted Residential Parking Exclusion for all development residents (and their guests). Accelerate planning and development of Catholic University/Columbia Heights streetcar. No bike lanes or new bus routes on First St., NW

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Appendix 1 VMPs CURRENT McMILLAN AFFORDABLE HOUSING PROPOSAL

18 of 146 townhouses (12.5%) to be priced for sale affordable to eligible households earning up to 80% AMI 85 of 278 apartments (30.5%) in the Phase 1 Multifamily building (Parcel 4) as senior affordable housing, priced for rent affordable to eligible households, 55 years and over, earning up to 50% and 60% of AMI. Hence a total of 103 affordable units in Phase 1 if we succeed in getting the Senior Housing financed as we intend. That additional information should also be available on IBIS after we submit it on/about Feb 17th. The Phase 2 multi-family building specifics will be determined when we submit a Consolidated Building application for that property at some point in the future. In our Stage 1 - Masterplan, that building is depicted as an 8-story building with 258 units. Hence we would dedicate no less than 22 units as affordable IF the building is developed at 8 stories with 258 units. If shorter/fewer units, the affordable unit count will adjust accordingly. These units will be affordable to eligible households earning up to 80% AMI. Also note, currently 100% AMI for a family of four is $107,000. Here is the breakdown of income limits by household size.

Income Limits for 2014 (Based on 2014 MSP Income Limits)

50.00% 1 Person 2 Person 3 Person 4 Person 37,450 42,800 48,150 53,500

60.00% 44,940 51,360 57,780 64,200

80.00% 59,920 68,480 77,040 85600

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Appendix 2 McMILLAN ADVISORY GROUPs (MAG) PREFERRED FUNDING OPTIONS FOR MCMILLAN AFFORDABLE HOUSING

HUD's LIHTC (Low-Income Housing Tax Credit) program provides tax credits to states, which offer them to developers of eligible low-income housing projects. The developers offer the tax credits to investors, who help fund the projects. The IRS allows developers to deduct one dollar from their tax liability for each LIHTC they purchase.

Syndicate the tax credits, where investors usually claim LIHTCs over a 10-year period. A developer, however, needs cash up front to bring a project to fruition. Generally, developers offer the credits through a syndicator, who puts together a group of investors. The syndicate sells the rights to future credits for immediate funding.

HUD offers a funding program known as HOME that can be combined with LIHTCs in some cases.

To qualify for HUD's LIHTC program, your development must be a residential rental property that adheres to reduced rent standards and HUD-mandated income requirements for a period of 30 years or longer. HUD uses two standards to set rent/income thresholds. Under the 20-50 rule, HUD notes that 20 percent of the units must use rent limits and be occupied by households earning 50 percent or less of their area's median income. The 40-60 rules means that 40 percent of the units must adhere to a rent cap and house families making 60 percent or less of their area's median income.

DC Housing Production Trust Fund as a source for affordable housing funds. Non-profit organizations where grant and funding can be obtained.

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