Tough Times

In the course of our business, there may be low times as well as high times. It's unrealistic to expect every minute to be perfect and filled with success. There may be times when my colleagues and I disagree or clients are unresponsive. We may have different opinions from each other, want to spend time on seperate projects, or simply be in a bad mood.
Business relationships don't always have to be fun and exciting. Real life is about experiencing emotions of all kinds. We may experience sadness, frustration, anger, disappointment, depression, or any other feeling that isn't usually considered to be positive. These feelings are all part of life.
I am working to accept that as long as I'm communicating things will work out.

Hill East

In this down economy it seems a speculative new development project would be a bad idea.
But, four development teams presented their plans to build a new 67-acre Hill East neighborhood to a crowd that packed the school cafeteria of St. Coletta of Greater Washington on Capitol Hill.
The teams are bidding to be named master developer of the project, which D.C. officials hope will be an environmentally innovative development that connects the existing neighborhood to the Anacostia River waterfront.
The most aggressive group ed by Urban Atlantic (formerly MidCity Urban LLC) and eight partners including BBE LLP, Blue Sky Housing and Eagle Vision Ventures, as well as Vornado/Charles E. Smith and Trammel Crow Co. Its proposal is the most high density, exceeding 5.1 million square feet, and includes the most housing, 2.9 million square feet of mixed housing types and a 90,000-square-foot indoor sports complex.
Through an agreement with Sun Edison LLC, most of those buildings would be covered with a vast solar panel system tied to an underground geothermal heating and cooling system, as well as wind turbines, all generating power to be used during hours of peak electricity. Urban Atlantic also proposed 938,000 square feet of office space and 262,000 square feet of retail. The development would include almost another 1 million square feet to medical and academic space, providing a nursing academy and primary and emergency health services. The team also proposed the immediate development of an interim retail element, creating a “Festival Center” that would include a 140,000-square-foot Wegman’s grocery store, which would be the first of that chain in the District. They estimate a creation of 4,000 permanent jobs, 1,000 education jobs and 1,200 construction jobs annually.
However, in the current economic climate, where will the capital for the Hill East redevelopment come from. Banks refuse to lend to even the least risky speculative projects and private equity is tight. I don't think this is the right time for the city to start offering new TIF agreements either. So, lets be realistic and put Hill East on hold.

The Real World Meets the Digital World

Imagine walking down the street. You see a dress in the window of your favorite store. You would like to purchase the dress but the store is closed. What if you could take a picture of the dress with your cell phone which would then allow you to view a host of digital media. You could learn about the designer, price and where it could be purchased online. Amazing you say!
Enter Reston-based Media Discovery the two year old company that has created the technology do just this. Founder, David Miller, believes that the future of the media business will be in connecting the real world with the digital world. Miller contends that the consumer ultimately wants to transcend the gap between their physical world and digital media accessible through the world wide web. Media Discovery's proprietary technology enables a cell phone to use two dimensional bar codes, digital imaging and the world wide web to produce a connection to almost any form of digital media.
Look for Media Discovery to be on the forefront on the new media world.

Madoff Screws the Jews

Included in the long list of people Bernard Madoff screwed is the Jewish Federation of Greater Washington. According to the New York Times, the federation said in a letter to donors that it had $10 million invested with Madoff, about 8 percent of its endowment as of Nov. 30. Madoff was arrested on December 12, 2008 for securities fraud after his two sons turned him in. Apparently Madoff constructed a “giant ponzi scheme” deflecting investment losses by paying out earnings that never existed. I guess Madoff’s spectacular returns year after year that humbled fellow money managers make much more sense with this new information. It was all bullshit! How many more respected business men in today’s economy will turn out to be criminals? I hope this is the last as our nation’s trust in the business community is quickly eroding.

Federal Government Hurting

The District of Columbia's largest employer is hurting. The federal government registered a record budget deficit for the month of November, reflecting the impact of a recession on tax receipts and the mounting costs of the $700 billion financial rescue program. We are on track to hit a record deficit of $1 trillion or more for the entire year, which would be more than double the previous all-time high set last year. The gap between the government's revenue collections and what it paid out last month totaled $164.4 billion, the largest deficit ever recorded for the month of November. In just the first two months of this budget year, the deficit now totals $401.6 billion. A deficit of $1 trillion for the year would set a new record-high in dollar terms, and would be the largest as a percentage of the overall economy since World War II. Scary.

The First of Many

The First of Many

In the midst of the nation wide market meltdown, major corporations are not the only ones feeling the pinch. In the District of Columbia, many small retailers are having trouble and there is no easy answer to their woes. While Wall Street gets bailed out the little guy continues to suffer. Business has dropped significantly in local retail meccas such as Georgetown, Chevy Chase and Tysons Corner. It seems that consumers are no longer willing to splurge on non-essential goods. Estimates show that receipts at local restaurants are down at least 14 percent from last year forcing owners to scramble to make the rent. Consumer spending has not kept up with rising food prices, destroying profits. Meanwhile, banks are refusing to make loans to small businesses, thus making the problem worse. So, what will happen? Look for many small locally owned retail businesses to shut their doors in the next 18 months. In their place landlords will seek well branded, high credit rated, national tenants to fill the gap. Sadly, we may see the last of the District of Columbia's local flavor replaced by the franchisee.