Washington Business Journal by Karen Goff

Roadside Development and the District have called off their deal for the redevelopment of the historic Grimke School and an adjacent lot at Vermont Avenue and U Street NW, D.C.'s Deputy Mayor for Planning and Economic Development said Monday.

The request for proposals for Grimke was released by former Mayor Vincent Gray in 2014. The winning plan for the 52,000-square-foot school plus adjacent gymnasium and parking lot, from Roadside and Sorg Architects, included a permanent home for the African-American Civil War Museum, studios and offices for Step Afrika!, CityDance, Imagination Stage and Dance USA, a six-story, 30-unit condominium building with ground-floor retail, and seven four-story townhomes.

The estimated $35 million project at 1923 Vermont Ave. NW was put on hold while the parties worked out affordable housing allocations (they ultimately reserved 13 units), but it did finally win approval by the D.C. Council in February 2016. The Washington City Paper reported in mid-November that neighbors were frustrated by the nine-month delay since the project was approved.

"It's unfortunate the proposed deal that was unanimously approved by council and supported by the ANC wasn't realized," Deputy Mayor Brian Kenner said in a statement. "We remain committed to the community and will work with a sense of urgency to move this project forward; it's what the residents have asked for and what they deserve."

Roadside Principal Richard Lake said there were several issues that led to what he said was a mutual decision.

"There were some things that were not going to work," he said Monday. "There were some financing things we were going to need down the road from lenders. You can't always foresee what your needs are going to be. We also had deal fatigue. We worked on this for a long time and we just weren't getting together on some things."

Added Lake: "We still believe positively about the site. We think it will be successful in spite of us and without us."

A spokesman for Kenner said the District will move forward and try to come to terms with Community Three and Torti Gallas Architects, who finished second in the RFP competition. The Community Three/Torti Gallas proposal includes plans for a 10,000-square-foot museum, 1,500 square feet of space for the U Street Arts League and 4,400 square feet for use by Torti Gallas.

The District hopes to reach a deal with Community Three by March. If that does not come to fruition, the opportunity will be reintroduced during DMPED's annual March Madness event.

The Grimke School was constructed in 1887 as the Phelps School. In 1934, it was renamed for civil rights activist Archibald Grimke. It was most recently used as the headquarters for the Fire and Emergency Medical Services and Corrections departments.

Roadside has plenty to do without Grimke, including finishing up CityMarket at O and redeveloping the Fannie Mae headquarters on Wisconsin Avenue NW, which it acquired last week in a partnership with North America Sekisui House for $86 million.

http://www.bizjournals.com/washington/news/2016/12/05/exclusive-district-roadside-part-ways-on-grimke.html