Junction Development Project
TPSS Board of Representatives Notes:
March 15, 2018
Dear Members of TPSS Co-op,
We have appreciated your support throughout the City of Takoma Park’s deliberations on how to develop the City-owned lot next to our store, including the City’s 2017 review of a Concept Plan submitted by Neighborhood Development Corporation (NDC). We have shared with our members and the City Council our serious concern that the dense development proposed by NDC provides too little space for Co-op deliveries or trash and recycling pick-up, and that the likely backup of trucks in front of the new development will cause safety risks.
The City’s deliberations will enter a new and decisive phase this spring, when the City Council considers a new and more detailed Site Plan. NDC is scheduled to submit the plan in April, and the City Council plans to take up review starting April 4. Currently, the Council is scheduled to vote on whether to accept NDC’s Site Plan on May 9.
We will be evaluating the plan carefully, communicating our concerns to you, and asking for your support again. In the meantime, please see our Junction Development Project page
for an update on NDC’s proposal, our concerns to date, and what to watch for in the coming weeks.
We are pleased to report that the day-to-day management of our store continues in the capable hands of acting general manager Hussein Choteka. Our search for a new permanent general manager also proceeds, and we encourage our members to spread the word about this exciting opportunity for leadership of the Co-op management.
http://www.tpss.coop/Careers.html
Sincerely,
TPSS Co-op Board of Representatives
Read previous messages from our GM here.
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November 7, 2017
A more complete picture of TPSS Co-op - 
November 7, 2017
Nearly 10,000 households mostly from Takoma Park and nearby D.C. have paid $100 apiece to become member-owners of our co-op. We have been growing lately at a net rate of about 500 new households a year. Unlike the big supermarkets, no hedge funds or foreign conglomerates are involved in TPSS. Each shareholder gets one vote electing our local board of directors. They also get discounts when they shop. You don’t have to be a member to shop at TPSS, of course, but in joining, one makes a statement of support for who we are and what we do in Takoma Park and Montgomery County. |
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October 27, 2017 - Update added Letter from the city requesting information, and the TPSS Co-op response 
October 18, 2017
October 25, 2017 |
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October 08, 2017 City Council Will Act Soon on Takoma Junction Development. The Future of Our Food Co-op Could Be at Stake. Please Call Now. Dear TPSS Member-Owners, |
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June 12, 2017 The FACTS and FICTIONS of the Junction Redevelopment
FICTION: TPSS has always been
opposed to the Junction development and has worked to block
it. TPSS first approached the City about expanding onto the parking lot two years before the RFP was issued. TPSS began speaking with potential developers soon after the City issued the RFP in January 2014 with the goal of forming a working relationship. After the City narrowed their selection to two finalists, TPSS backed the Neighborhood Development Corporation (NDC) based on their proposal, which included TPSS remaining in the Turner Building with expanded space to the west and access to an unloading facility similar to what is presently in place. TPSS has spent countless staff hours and over $200,000 on a real estate attorney, architect, and co-op development consultant in order to expand into the new development. TPSS has consistently sought development that would allow for our business continuity needs and that is consistent with community values.
FICTION: The LOI process was
too long and detailed. From the beginning, it was TPSS’ hope that by clearly stating all of the terms of expanding into the Junction Project future misunderstanding would be avoided. While the give-and-take of the LOI process was arduous, it was the intention of TPSS to smoothly and quickly convert the LOI into a lease. As there have been at least three iterations of plans for the lot presented publicly by the developer, a detailed LOI, easily converted to a lease agreement, would have added substantial assurances and protections for all parties, including the City.
FICTION: Doubling the Co-op
space will result in double the income. Our national consultants, with experience creating financial plans for over 200 co-op building projects, advised that any net income increase would be minimal and realized only after many years of negative or zero growth due to increased operational expenses of a larger store, expansion expenses and repayment of borrowed capital. Additionally, NDC’s requested substantial rent increase, escalating annually, would significantly reduce profits.
FICTION: TPSS demands were unreasonable
and constantly changing. As soon as the RFP was released, TPSS met with City staff to discuss the Co-op’s survival needs: access for the 65-foot trucks delivering products daily, adequate parking, and business continuity during and after construction. TPSS met with each developer who submitted a proposal and reviewed these three operational needs. TPSS urged the Council to select NDC because their proposal satisfactorily addressed these needs. NDC’s plans have changed repeatedly and no longer adequately address these operational necessities, which have not changed in over three years.
FICTION: TPSS refuses to “deliver”
the Turner Property to NDC for development. TPSS is absolutely unable to deliver the property to anyone, as it has no ownership stake in the property; we are merely lessees. The trust that owns the property has refused to sell (even to us). The owners of the Turner Building have directly communicated this to the Co-op and NDC, and they are not interested in a business relationship of any kind with NDC.
FICTION: TPSS just didn’t want
to expand. TPSS engaged in negotiations with NDC to lease expansion space for three years starting in April, 2014. When NDC changed its lease proposal from $28.50 per square foot to $45 per square foot, it became apparent that expansion under those terms was financially unrealistic. While TPSS agreed to incur the expenses involved in conjoining the Turner Building with the expansion space in the new development, we could not also agree to pay a premium for those expenses, compounded annually, and added onto the base rent for each year of the lease.
FICTION: TPSS has plenty of
money in the bank for the expansion process. Thanks to prudent business practices, TPSS does have a cash reserve for expansion; however, it would only begin to cover the costs of an expanded space.
FICTION: TPSS has no expertise
in development and NDC is the expert. TPSS is a food store, but we engaged a number of experts to guide us in the development process: a highly reputable real estate attorney, an architect experienced in urban/suburban development, and the nationally recognized Development Cooperative, which has completed over 200 co-op development projects. The process has cost the Co-op over $200,000. While NDC is indeed a developer, they have engaged other companies for this process as well.
FICTION: TPSS has received much
from the City and anyway, governments do not help businesses;
therefore, the City should not “put its finger on the scale”
for TPSS. As a resident noted at the May 10 Council meeting, governments help businesses all the time, from grants to loans to tax breaks, and so forth. A New York Times article discusses many of the ways that governments often help small businesses. TPSS has asked the City for none of these; we have asked only for adequate parking and a truck unloading area for our daily semi deliveries for which we were willing to pay fair and reasonable rent. TPSS has also received assurances that no competing store would be part of the development.
FICTION: The State of Maryland
gave the Co-op $500,000 for their expansion. The funds from the state are part of an annual program for which we applied. They are not for expansion, but for capital improvements in general; the funds must be matched by Co-op funds; and they must be used in the upcoming fiscal year (FY18, between July 1, 2017 and June 30, 2018). The Co-op was one of the many businesses statewide that received financial or other support from the State of Maryland for FY18. |
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May 12, 2017 The TPSS Co-Op $500,000 State of Maryland Grant
The Takoma Park Silver Spring Co-op is not just an anchor at
the Junction, but an anchor for our entire community. We are
extremely grateful to Governor Larry Hogan and Comptroller Peter
Franchot for recognizing the importance of our community grocery
store in improving quality of life by providing better and healthier
eating options and helping to combat hunger by supporting local
charitable organizations and efforts.
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May 10, 2017
TPSS Response to NDC
NDC’s May 8 original letter can be found on the City of Takoma
Park webpage: "We were, and still remain, puzzled why you (NDC) suddenly insisted upon a $45 per square foot base rent and a 4% annual escalation when ... in 2016 (NDC) offered the Co-op a $28.50 per square foot rent with a 3% annual escalation."
Mr. Adrian G. Washington
Consequently, we were, and still remain, puzzled why you suddenly
insisted upon a $45 per square foot base rent and a 4% annual
escalation when most, if not all, of the above factors were
already known to NDC in 2016 when it offered the Co-op a $28.50
per square foot rent with a 3% annual escalation.
We at the Co-op are further puzzled by your statement at our
May 4, 2017 meeting that, by doubling our space, we would double
our profit and could therefore easily handle the significant
increase in base rent you were now proposing. Throughout the
redevelopment process, the Co-op has worked with a nationally
known research company to study and analyze market trends and
demographics in the Takoma Park area. The data thus acquired
has been used by Development Cooperative, a nationally-recognized
economic consultant to food cooperatives, to produce a pro forma
of TPSS’ projected income and expenses through 2026. This gives
us an independent realistic analysis of the economics arising
from our proposed expansion space. It was upon this unbiased
third-party professional analysis that we based our conclusions
about the expenses the Co-op can undertake without jeopardizing
both its financial health and future viability, of course using
the expected rent in the $25-$28.50 range. Development Cooperative’s
pro forma is confidential competitive information to the Co-op,
but we can assure you that it does not demonstrate a doubling
of the Co-op’s profits due to doubling the space we occupy today.
We at TPSS look forward to working with you in the coordination
of the Takoma Junction project, especially in meeting the LDA’s
requirement “to provide reasonable accommodation” for the Co-op’s
continued operation of our business, including delivery access
and sufficient parking. |
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May 04, 2017 TPSS Co-op Unable to Reach Agreement with NDC
Dear TPSS Members:
Dear Mayor Stewart and Members of the City Council: |
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March 08, 2017 TPSS Co-op Expansion Update and Community Input Meetings Reminder
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TPSS EXPANSION/JUNCTION REDEVELOPMENT
UPDATE
February 6, 2017
Negotiations between TPSS and Neighborhood
Development Company continue as we try to reach an agreement for the
Co-op to remain in our current building and expand into the proposed
adjacent development.
Letter of Intent (LOI) Timeline
Highlights
1. The Co-op offered NDC a detailed Letter of Intent to occupy space
in the development on December 29, 2016, with copies sent to the City.
2. NDC and the Co-op discussed the LOI on January 3, and the Co-op made
modifications, including considering NDC’s condition to accept a lay-by
on Carroll Avenue for 18-wheeler unloading, even though it may create
both safety issues for the intersection and logistical and economic
issues for the Co-op.
3. The Co-op submitted this revised LOI to the developer, with copies
to the City, on January 10, 2017.
4. On January 11, in accordance with the Land Development Agreement
that the City had with NDC, the Council voted to allow NDC to pursue
talks with potential anchor tenants other than the Co-op.
5. On January 30, NDC responded to the Co-op’s revised LOI with their
own requested revisions. Our Expansion Team and real estate attorney
are currently reviewing this proposal.
6. Both the original and revised LOIs are lengthy to allow for a solid
agreement at this time. A detailed, specific LOI is typical in such
real estate negotiations between landlords and potential anchor tenants
in an as yet to be designed development. These terms would all have
to be addressed in lease negotiations, so it is best to work them out
upfront.
7. Negotiations continue between NDC and the Co-op, and both parties
have expressed the desire for the Co-op to be the anchor tenant.
On December 29, 2016, the Co-op submitted to NDC, with copies to the
City, a detailed Letter of Intent (LOI) to lease space in a redeveloped
Takoma Junction lot. At NDC’s request, the expansion team met with NDC
on January 3 to discuss the LOI. A number of issues were discussed at
that meeting, and, based on comments by NDC, the Co-op revised the initial
LOI and submitted the revision to NDC on January 10, 2017.
Both the initial and revised LOI confirmed our willingness to occupy
6,000 square feet connected to the Turner building in the proposed development.
In a large compromise based on NDC’s comments, in the revised LOI the
Co-op agreed to forego an on-site unloading area (which was part of
NDC’s original winning bid for the project) for the 18-wheel delivery
trucks that arrive daily. Instead, we agreed to consider the lay-by
option on Carroll Avenue that NDC has insisted is our only unloading
choice.
The plans for the development continue to be in constant flux and significant
unknowns and risks remain as TPSS faces the challenge of trying to make
the lay-by work. With this in mind, under the guidance of our real estate
attorney, we built into our LOI several safeguards. We also needed to
specify and lock down certain fundamentals - especially how deliveries,
the lifeblood of our business, could be handled efficiently, economically,
and safely.
We could not make a 19-year commitment to something without trying to
address every possible pitfall and danger to the Co-op’s future.
All of the issues addressed in the Co-op’s LOI would have to be resolved
during negotiations for a lease if we can get to that point, so it makes
sense to handle them now to avoid future difficulties as much as possible.
As was the case with our previous LOI, this new version is of the length
and format typical in negotiations such as these. In the Co-op’s view,
at this time the only definites for us are as a potential anchor grocery
store contemplating leasing space in an as yet un-designed development
fraught with many uncertainties: community input, political decisions,
design concepts and permitting issues, among others.
At this time, there is no signed LOI between NDC and the Co-op. Because
NDC did not accept all of the terms of either the Co-op’s initial or
revised LOI, the Takoma Park Council had two choices on how to proceed
at their January 11 meeting. As outlined in the Land Development Agreement
between the City and NDC, the Council could:
(a) require NDC to seek a letter of intent with an anchor tenant for
the project other than the Co-op and to provide reasonable accommodation
to the Co-op for the continued operation of its business in its current
facility, or
(b) terminate the Agreement upon ten business days’ notice to NDC and
to pay NDC an amount up to Seventy-Five Thousand Dollars ($75,000.00)
for reasonable, out of pocket costs incurred as of the date of the termination.
The Council agreed to the first alternative and passed a resolution
that states:
NOW, THEREFORE, BE IT
RESOLVED THAT THE CITY COUNCIL OF TAKOMA PARK MARYLAND authorizes
Neighborhood Development Company LLC to commence seeking a letter of
intent with another anchor tenant for the Takoma Junction project other
than the Takoma Park Silver Spring Co-op.
BE IT FURTHER RESOLVED THAT Neighborhood Development Company,
LLC is to provide to provide reasonable accommodation to the Takoma
Park Silver Spring Co-op for the continued operation of its business
at its current premises pursuant to the Development Agreement.
While NDC is free to search for a new anchor tenant during the next 18 months, they have expressed their strong desire for the Co-op to fill that role. Negotiations continue between us.
NEW LETTER OF INTENT (LOI) COVER
LETTER
January 10, 2017
The new LOI including Exhibits are available as
a PDF file
here.
January 10, 2017
Via Email
Mr. Adrian Washington
The Neighborhood Development Company, L.L.C.
3232 Georgia Avenue, N.W. Suite 100
Washington, D.C. 20010
Re: Takoma Park Silver Spring Co-operative, Incorporated
Dear Adrian:
Thank you for submitting NDC’s revised Letter of Intent dated January
6, 2017, which incorporates NDC’s proposed design plan that it suggested
at our January 2, 2017 meeting. We also appreciate your repeatedly remarking
during that meeting that many of our December 29, 2016 Letter of Intent’s
provisions were “standard.”
As I explained to you during that meeting, the Co-op’s only truly viable
option without significant risk to its business operations or necessitating
material conditional qualifications would be for NDC to provide us with
the receiving/unloading area as outlined in our plan that was attached
to our December 29, 2016 Letter of Intent. That plan, without a traditional
loading dock with hydraulic lifts and concrete bays, was our adaptative
response to your previous refusals to provide the Co-op with a loading
dock as shown on the site plan which NDC had proposed in its submission
to the City’s RFP. If NDC had been willing to develop its Takoma Junction
project in accordance with its original plan (which had a loading dock)
– or even as proposed in our December 29, 2016 LOI (in which we compromised
by offering to accept an unloading/receiving area, but no “true” loading
dock) – either approach would have enabled our large delivery trucks
to deliver products to our store efficiently, safely, and without significant
operational and economic risk to our business.
At our January 2nd meeting, however, you again insisted that the Co-op
accept NDC’s concept of a lay-by in any LOI despite its scope, legal
existence, operational attributes, cost and risk allocations, and other
aspects all being wholly undefined by NDC in any practical way.
Therefore, as an attempt to reach agreement with NDC before January
11, 2017, we offer a compromise proposal which accepts to some degree
your concept of a lay-by area, but subject to the satisfaction of certain
conditions, all as more particularly described in our attached revised
Letter of Intent dated January 10, 2017. As was the case with our December
29, 2016 LOI, this new version is of the length and format that one
would expect from a potential anchor grocery store contemplating leasing
space in an unbuilt, un-designed development fraught with so many uncertainties.
As you will read, we have attempted to be as responsive as possible
to the points in your January 6th LOI while still taking into account
the Co-op’s business and community needs and expectations, especially
as a result of its now including NDC’s lay-by area concept.
Due to the Co-op’s multi-year efforts in trying to reach agreement with
NDC about our possibly leasing space in your project, prior to December,
2016, we’d already spent over $143,770 on development consultants, our
architect, and our attorney and thousands of staff hours. Those efforts
also included the Co-op’s discussions, on NDC’s behalf, with the Turner
Trust about its interest in selling its property to NDC or surrendering
long-term control over it to NDC. As a result of the Co-op’s preparing
its December 29, 2016 LOI and revising it since last Friday, January
6th to address your still mostly-incomplete January 6, 2017 LOI (both
of which efforts necessitated input from those same advisors), we’ve
now spent over $175,000.
I mention all of this past history to you again as general background
so that you, the City Council, and others are well aware of the Co-op’s
hard work and financial contribution in attempting to provide practical,
workable solutions for the design and business difficulties arising
from the small size of your proposed project at Takoma Junction– difficulties
that, frankly, are always the project developer’s responsibility, and
not the major anchor tenant’s, to resolve.
In your January 6, 2017 cover letter which accompanied NDC’s latest
LOI, you, however, are still focused on somehow increasing the size
of your project. You re-emphasize and reiterate yet again that NDC’s
“ Preferred Concepts” for the Takoma Junction’s development include
NDC’s gaining control of the Turner property and either demolishing
or repurposing its building. As you well know, the Turner property is
private property and was never part of the property offered by the City
in the RFP or at any time thereafter. As you are also well aware from
our lengthy explanation in my December 29, 2016 cover letter to you
which contained an extract from our Turner lease and a recitation of
our outreach efforts to the Turner Trust on NDC’s behalf, the Coop cannot
legally or ethically agree to NDC’s “Preferred Concepts”. Your January
6th LOI also proposes that we lease space in NDC’s project for 25 years.
As we had proposed in our December 29th LOI, our proposed lease term
must instead expire on December 31, 2035 (the same date as our presently
scheduled expiration of our lease for our Turner Building premises).
We cannot therefore agree to NDC’s proposed 25 year lease term.
Your January 6th cover letter then goes on at length to explain why
you rejected our unloading/receiving area concept that we offered in
our December 29, 2016 LOI. However, you, too, ultimately concluded that,
without such an unloading/receiving area, the only remaining logical
plan that would enable the Co-op to occupy space in the NDC development
is for the Coop to continue operations in the Turner building with a
new expansion space to the west, with the two buildings being conjoined
(NDC’s “Co-op Expands West” concept). You state that: “In the spirit
of compromise, we are willing to move forward with this concept… Unloading
would be via a “lay-by” on Carroll Avenue to a front location in your
new space.”
We fail to see how NDC’s accepting this lay-by concept is any sort of
a real compromise on its part. The only thing NDC may eventually “compromise”
on is finally giving up its attempts to gain control of the Turner property
(which we advised you over 19 months ago would not be acceptable to
the Turner Trust).
For three years, the Co-op has stressed the need for its 18 wheeler
trucks to access the site in a manner that is efficient and economical
and allows for the safe delivery of goods. It is we, the Co-op, who
are making a huge compromise by trying to make NDC’s proposed lay-by
work for the Co-op despite a tremendous amount of uncertainty and potential
risk that could include, among other factors: (a) a highly negative
impact upon the Co-op’s profitability and/or efficiency; (b) the safety
of our community’s pedestrians, bus riders, and other drivers in addition
to that of our delivery truck drivers and our staff; and (c) traffic
challenges that transcend the Coop’s business needs and adversely affect
our entire community.
For example, there is no place for a second truck to wait if there is
already a truck in the unloading area. In addition, this unloading area
would be used not only by the Co-op, but most likely, by all of the
other retail tenants in NDC’s development. Trucks for all of the project’s
tenants that are forced to wait on Carroll Avenue will back up traffic,
which is already a problem at the Junction; the Fire Chief has already
expressed his concerns about the effect such traffic backups could have
upon emergency response times. Once the lay-by’s effects on our community’s
traffic patterns become obvious, a governmental entity with traffic-related
or other oversight authority could later object to it and request modifications
that adversely affect the Coop and/or other project tenants (or even
require its cancellation).
Nonetheless, at our expense, our architect has preliminarily evaluated
your January 6th lay-by design plan prepared by your architectural consultant,
StreetSense, which shows the maximum travel distance of 45-50 feet from
the back of our delivery trucks to the front of our premises within
NDC’s project. He has advised us that NDC’s proposed dumpster area is
too small for a grouping of dumpsters and would likely be inaccessible;
that this same area or another would have to be designated for the storage
of up 11 empty pallets awaiting pickup by the distributor; and that
NDC’s proposed lay-by area is, in the relative scale shown on NDC’s
plan, too short and narrow to allow use suitable for the Co-op’s business
purposes. In addition, he also advised us that, although he understands
that NDC’s plan is diagrammatic in its intent, relative scale is important
and at the relative scale now shown on NDC’s plan, NDC’s proposed dumpster
area and the lay-by will be difficult, if at all possible, to institute
while also providing space for the requisite services needed by the
Co-op that such design areas represent. In plain English, as presently
proposed, NDC’s January 6th design plan presents significant practical
and operational impediments.
In addition, our business consultants have advised us that: (a) NDC’s
elevator(s) to the underground parking facility, as presently shown
in that design plan, should be made larger to accommodate two shoppers
each with a large four-wheeled shopping cart and relocated to the other
side of the parking facility so that our customers can enter into and
exit from our new premises directly, instead of having to cross the
parking facility in order to enter our premises and, after shopping,
re-cross the parking facility with their shopping carts; and (b) the
parking facility must contain sufficient room and a designated area
in the parking facility for our customers to leave their empty four-wheeled
carts after shopping.
Despite the foregoing inefficiencies and other operational uncertainties
and risks, known or otherwise, we have included your lay-by area concept
in our attached LOI, trusting that NDC will revise its plan and other
aspects of its project and the lay-by area to address the Co-op’s many
concerns satisfactorily. However, due to our incorporation of NDC’s
lay-by concept into our LOI, we had to significantly re-draft our LOI
to ensure the viability and continuity of our business operations and
to provide us with various options if NDC’s lay-by area, as built and
used, doesn’t work for us.
As you know, our December 29th LOI was predicated upon the concept that
NDC would provide on-site access to a receiving/unloading area for 18-wheel
delivery trucks. Consequently, we’d offered to offset, in part, NDC’s
reduction in its developable space by contributing to its construction
costs for our proposed receiving/unloading area and by also paying rent
to use that space in common with other Takoma Junction tenants. In addition,
we’d offered to cover certain other costs, such as those incurred in
evaluating the conjoining of our Project premises with the Turner Building.
Because NDC has rejected that receiving/unloading area and insisted
upon the lay-by area, we have removed most of these financial contributions
from our attached LOI.
No reasonable person can now guarantee that such proposed lay-by will
work for us or that it will be approved by all necessary government
entities. Because of all the various factors, known and unknown, and
the potentially adverse effects of NDC’s proposed lay-by area upon the
Coop’s continued success or even future viability, our attached LOI’s
Section 16 now includes several termination clauses covering as many
of the risks inherent in the lay-by area as we can presently contemplate
(but we reserve the right to modify or add to those options at any time
prior to the Lease’s execution).
For example, the fourth termination clause deals with the reality that
even if such lay-by area is initially approved by the applicable governmental
authorities, there can be no guarantee that such approval won’t be rescinded
or amended at a future date, possibly leaving the Co-op with no delivery
options at all. As another example, our fifth termination option identifies
some of our other concerns about possible negative effects upon the
Co-op associated with the use of the layby area. In the spirit of compromise,
that fifth termination options offers NDC what we trust will be a mutually
satisfactory, commercially reasonable period for NDC to ameliorate our
concerns or those of our neighboring community or others.
We are excited to share this proposal with you and look forward to working
with NDC to provide our Takoma Park community with a vibrant, revitalized
Junction.
Yours truly,
Marilyn Berger, Expansion Project Manager
CO-OP SUBMITS LETTER OF INTENT
(LOI)
December 29, 2016
The full LOI including Exhibits are available as
a PDF file
here.
Via email
December 29, 2016
Dear Adrian:
I hope you had a nice holiday season and wish you and your team a Happy
New Year!
Our Expansion Team and consultants have been spending a great deal of
time carefully evaluating your cover letter and draft Letter of Intent
dated December 1, 2016. Attached is our draft letter of intent (LOI).
As you will see, we have attempted to be as responsive as possible to
the points in your draft LOI and in various emails from you while still
taking into account the Co-op’s business needs. Much of what we address
in detail in our attached LOI was first proposed conceptually in our
attorney’s May 4, 2016 email to NDC’s counsel. We’ve expended significant
effort on including such detail now with the hope that it will expedite
our future discussions.
In a good faith effort to make this project work for NDC, the City,
and us, the Co-op has already expended a great deal of time and money.
To date, we have spent $130,770 on development consultants, who have
been involved nationally in over 200 new and expanded cooperative grocery
store projects; on an architect with over 25 years of commercial and
other design experience (who is also a member of the American Institute
of Architects); and on a commercial real estate lawyer who has worked
on several large-scale public-private mixed use projects (and been recognized
by his peers as a “Super Lawyer” for the practice of real estate law
in both Washington, D.C. and Maryland). This does not include the thousands
of staff hours that have been dedicated to that same effort.
In your December 1, 2016 cover letter which accompanied NDC’s LOI, you
outlined NDC’s two preferred options for the Co-op to serve as the anchor
tenant on the redeveloped Takoma Junction site:
1. Your first choice would be for NDC to develop the full Takoma Junction
(TJ) site plus the Turner Trust property in two phases. First, NDC would
build a new location on the TJ site for the Co-op, after which the
Co-op would move out of its current space and relocate entirely into
the new NDC space. Following that, as phase 2, NDC would somehow gain
control of and develop the old Turner site.
2. Your second choice would be for NDC to develop only the TJ site,
which is actually the only land owned by the City and included in the
Land Development Agreement. NDC would build a new location at TJ for
the Co-op into which it would move (either under a lease or by purchasing
a condo unit if NDC develops TJ as a condo building), and then NDC somehow
would gain control of and "re-purpose" the Turner building.
Both of these options presuppose that the Co-op would terminate its
current lease with its landlord, the Turner Trust. Even if we were somehow
able to terminate our lease without breaching it (or being accused of
a lease default) and move entirely into your project, for the next 19
years, we’d be giving up an extremely favorable, well-below-market rent
structure for existing space that’s already suitable for our needs.
Your LOI only proposes an as-yet undetermined market-rate rent for un-designed,
unbuilt space that may not include a suitable unloading/receiving area
for our merchandise. Furthermore, as a matter of fairness to the Turner
Trust, our business ethics preclude us from intentionally doing something
that would be a potential breach of our lease.
In addition, our lease with the Turner Trust precludes us, both legally
and practically, from our accepting either of your first two options.
Our lease states that: “Tenant will use said Premises actively and continuously
for the full term hereof for operation of the business known as "Takoma
Park- Silver Spring Cooperative, Incorporated", which is engaged in
the operation of a food store.” So, even if the Co-op were so inclined
to vacate the Turner premises (and possibly breach its lease) as NDC
is suggesting, NDC cannot assume our lease and re-purpose the Turner
space to some other non-Co-op use, and the Co-op cannot realistically
assign or sublet its space to a replacement tenant.
Notwithstanding the foregoing analysis and although I’ve previously
told you about the Matthews family’s lack of interest in surrendering
to NDC their Trust’s control of their property that we lease, at your
request, I've since had several conversations with them concerning NDC’s
various proposals. During each conversation, they reiterated that they
had no interest in giving up control of their property, including, but
not limited to, selling it or renting it to NDC. They later followed
up in a letter stating their position to me. The Co-op must therefore
honor our long-term lease and remain in the Turner Building. We continue
to be interested, however, in a third option – the one that NDC included
in its winning response to the Request for Proposals dated May 28, 2014.
That option calls for TPSS to remain in its current building with the
Turner estate as its landlord, TPSS leases adjacent space in NDC’s project
and we integrate that expansion space to the west with our current space,
and NDC provides a traffic pattern that enables 18-wheel delivery trucks
to access an unloading area adjacent to the expansion.
In your December 13, 2016 email, you re-iterated the availability of
this third option except that you noted that: “[unloading] would be
by lay-by” and expressed concern that “combining the spaces would require
an extensive amount of time while the Co-op would have to shut down.”
You further stated that our “combining the spaces would require either
a sale of the Turner building or some form of binding long term control
of their property. [NDC] would look to [the Co-op] to get the Mathews
family to agree to this transaction.” As we have explained many times,
the lay-by off Carroll Avenue that NDC has proposed as the only place
for 18-wheel trucks to unload deliveries does not work for the Co-op.
Currently, those large trucks enter the municipal lot and back up to
a ramp that leads into the store. The total distance from the rear of
the truck to inside the store is a maximum of 55 feet. Under the schematic
that NDC shared with TPSS on June 17, 2016, that included the Co-op
expansion to the west connected to the current building, the distance
that goods would have to be manually transported from the rear of a
truck parked in a lay-by to an entrance to the store could be 196 feet.
This includes 146 feet of travel outdoors, exposed to the weather, plus
another 50 feet in a delivery corridor. The Co-op currently receives
up to 11 pallets of goods (up to 4,600 pounds each) in a single delivery
and hopes to double that amount with an expanded retail space. No matter
how goods would be transported the 196 feet, it would require multiple
trips and more staffing in addition to food safety issues that could
arise. It would also require the landlord to maintain a daily clear
path from the lay-by to the corridor on a 24/7 basis in all kinds of
weather, including the removal of snow or ice prior to early morning
deliveries.
Another factor that makes a lay-by financially unfeasible for the Co-op
is the delivery information and related response that we received from
the Co-op’s biggest distributor, UNFI (in response to NDC’s request
of us that we explore the lay-by with our vendors). Buying through UNFI
is a requirement for all food cooperatives that participate in the National
Cooperative Grocers group. This enables economy of scale so that we
can obtain products at the most advantageous prices. As we explained
to you, UNFI sets a “time to service” cap. “Time to service” (TTS) is
the amount of time it takes UNFI to make the delivery and get the drivers
back on their way. Stores that have long “TTS” have to be routed towards
the end of truck runs because the time needed to deliver negatively
impacts all of the other accounts/deliveries that are scheduled after
that customer. These late day (between 10 am and 4 pm) deliveries are
typically reserved for very small accounts or foodservice accounts.
TPSS TTS could increase to about 3 -4 hours for each delivery if a lay-by
and manual transportation of goods were used. This would put TPSS at
the end of the delivery runs which would have a negative impact on our
business’s ability to compete and grow. The Co-op’s long-standing intent
(creating our need for expansion space) has been to become more efficient
in order to be able to offer an even wider range of goods to our shoppers
at the lowest possible prices. TPSS cannot go from the current unloading
scenario to the proposed lay-by and still achieve our goal of a higher
degree of operational efficiency and better cost effectiveness.
The idea of a lay by presents other issues that could affect our community
and the City as well. There is no place for a second truck to wait if
there is already a truck in the unloading area. In addition, this unloading
area would be used not only by TPSS, but conceivably other tenants in
the development. Trucks for all of the project’s tenants forced to wait
on Carroll Avenue will back up traffic, which is already a problem at
the Junction; the Fire Chief has already expressed his concerns about
the effect such traffic backups could have on emergency response times.
Once the lay-by’s effects on our community’s traffic patterns become
obvious, either he or other governmental agencies with traffic-related
or other oversight authority could later object to it and request modifications
that adversely affect the Co-op and/or other project tenants (or even
require its cancellation). The Co-op needs to avoid such potential problems
by having a workable unloading/receiving area from the outset which
isn’t subject to such future uncertainties. We don’t believe that conjoining
our expansion space with our existing Turner lease space requires, as
you have stated, either “a sale of the Turner building or some form
of NDC’s binding long term control of [the Turner] property.” Instead,
such conjoining merely requires a written agreement among NDC, our current
landlord-the Turner Trust, and the Co-op used by many other mixed-use
projects with different adjacent owners and commonly known as a “covenants,
conditions & restrictions (CC&R) agreement.” Such agreements
typically allocate the parties’ responsibilities and liabilities for
constructing, using, maintaining, repairing, and replacing certain areas
of commonality between/among adjacent properties and contain one or
more easements to accomplish the objectives of their CC&R agreement.
Contrary to your December 23, 2016 email to me, however, NDC does not
need to now see our 2010 lease with the Turner Trust to ascertain whether
conjoining is feasible. Obviously, there is nothing in that lease that
addresses such conjoining. Instead, each party would address its own
concerns and issues in our subsequent discussions about a CC&R agreement.
As soon as you preliminarily agree with this conjoining approach, we
would discuss it with the Turner Trust. We believe that the Trust would
likely have no objection to our conjoining the two spaces, provided
that its property would be fully protected by the Co-op under such CC&R
agreement (which we are prepared to do).
You have also stated that knitting an expansion on the TJ site to the
Turner Building would require “an extensive amount of time,” possibly
“many months” to achieve. As
our attached
letter of intent notes, the Co-op is prepared to undertake, at our
expense, whatever planning, designing, legal analysis, and other activities
are reasonably necessary to conjoin our proposed expansion space in
NDC’s project with our Turner lease space. Your proposed project itself
will already take many months; during that time, we would be working
simultaneously alongside your architect, contractor, and you to achieve
our mutual objective of conjoining the properties. As proof of the conjoining’s
viability, our architect (whom we’d hired long before your December
23, 2016 email asked us to “immediately engage an architect”) has already
told us that:
“If addressed [properly by NDC and the Co-op], the construction of the
new space, the renovation of the existing and the integration of the
two, should cause no full days where [the Co-op] would have to cease
operations …. Generally speaking, and I have to reiterate that if we
plan the construction and transition phasing well, any closing would
be for parts of days, if at all.”
As you know, minimizing our business disruption has been a key issue
for the past three years along with the delivery plan. We understand
that this process will cause our transition to take longer and could
become more expensive than if we were to shut down completely, but the
volume of work that would be done after work hours is not considerable,
so the additional costs shouldn't be prohibitive. If NDC accepts our
conjoining and unloading/receiving area (instead of a traditional loading
dock) concepts, the Co-op is prepared to bear all of those burdens.
As you will see
in our attached
LOI, TPSS has come up with some creative ways to make expansion
onto the TJ site a “win-win” success for the City, the community, NDC,
and the Co-op.
1. TPSS is no longer requiring a “real” loading dock as proposed in
the specifications document prepared by Development Cooperative in July,
2015. What the Co-op is now requesting is an unloading/receiving area
that is accessible to 18-wheel trucks and adjacent to an entrance to
either the Turner Building or the expanded portion of the Co-op.
2. TPSS is proposing a contribution of up to $30,000 towards the construction
of such a loading area and is offering to pay rent to use it and help
offset the costs associated with dedicating the space to deliveries
rather than including it in developable space.
3. TPSS is offering to pay for the cost of conjoining the Turner Building
and the expanded space.
4. TPSS is willing to accommodate NDC by closing its store during its
least busy times on certain days and by working around and/or temporarily
re-arranging its vendors’ delivery schedules.
We are excited to share this proposal with you and look forward to working
with NDC to provide our Takoma Park community with a vibrant, revitalized
Junction. Yours truly,
Marilyn Berger, Expansion Project Manager
IMPORTANT UPDATE ON CO-OP EXPANSION
AND JUNCTION REDEVELOPMENT
November 17, 2016
A requirement of the Land Development
Agreement between Neighborhood Development Company (NDC) and the City
of Takoma Park is that NDC provide the City with regular updates on
negotiations between NDC and the Co-op to reach a Letter of Intent for
the Co-op to occupy space in the development. The latest update submitted
by NDC to the City, dated November 11, 2016 can be found on the City's
Takoma Junction Redevelopment website or you can
go directly to the PDF document.
We have responded with the following letter to the City:
via email
November 17, 2016
Suzanne R. Ludlow
City Manager
City Of Takoma Park, Maryland
Suzannel@Takomaparkmd.Gov
Re: NDC’s weekly Update Dated November 11, 2016
Dear Ms. Ludlow:
Because Adrian Washington’s latest update to the City on NDC’s discussions
with the Co-op concerning a potential Letter of Intent contains a number
of factual ambiguities and inaccuracies, we feel compelled to address
and correct these. Since all of the updates NDC has submitted to the
City are now available to the public via your website, I ask that in
the interest of impartiality, you will also post this follow-up.
In his letter, Mr. Washington shares with the City two final proposals
for inclusion of the Co-op in the development on the current municipal
parking lot. Both proposals call for a lay by, or cutout lane off Carroll
Avenue, a state highway. The Co-op has explained many times why such
an arrangement would be too costly and inefficient for our business
operations. Mr. Washington states the “Unloading for the Co-op’s large
“18 wheeler” trucks would be made via a ‘lay by’ lane on Carroll Avenue.
This unloading process is exactly the same as employed by several comparable
or larger grocers in the area, including Trader Joe’s.”
-
The comparison with other grocery stores is not appropriate for
a number of reasons, including
- TPSS abuts a totally residential area on two sides
- TPSS is located at a major, complicated intersection where elementary and middle school students walk.
- Trader Joe’s has its own warehouse and its own delivery trucks so it can control everything about its deliveries, including arrival times.
- There is no consideration of where other large trucks will wait if more than one arrives at the same time. Several days a week, multiple suppliers using 18-wheelers arrive at the Co-op, and we and they cannot control arrival time to the extent that we can be sure there will be no overlap.
- The concern voiced by the Takoma Park Fire Chief about traffic back-ups that might affect emergency response times
Mr. Washington goes on to state, “The distance from the proposed unloading
point to the loading door of the new Co-op space would be approximately
85 feet, as opposed to the approximately 75 feet the current unloading
process requires now. In other words, the proposed unloading
procedure under this concept would be essentially the same as the Co-op’s
current procedure, only a few steps further.” (Emphasis his)
This statement is inaccurate.
1. The exact distance from the point at which the delivery truck drops
the pallet to the door of the Co-op is 55 feet. The additional 30 feet
NDC proposes are not simply “a few steps further” especially when multiplied
by the amount of trips required to unload an 18-wheeler.
2. The unloading conditions would be very different from what they are
now. Utilizing a lay by would require unloading at the street, in an
unprotected lane directly adjacent to active traffic.
3. The Co-op’s future unloading needs would not be the same as they
are now. If the Co-op expands, we are hoping to double our retail sales,
thus requiring more and bigger deliveries. Our intent from the beginning
of our thoughts of expansion was to become more efficient, in order
to be able to offer an even wider range of goods to our shoppers at
the lowest possible price. The delivery process, as proposed by NDC,
would add to our operating costs, not help reduce them. With more frequent
deliveries and a higher volume of goods per delivery, being unloaded
at the street, unprotected, in all kinds of weather conditions at the
driveway to the development (the truck’s rear in the lay by would line
up with the driveway entrance), on a busy street, and then manually
transported to wherever the delivery entrance of the Co-op would be,
would make the entire process much less efficient. We cannot go from
the unloading scenario we have now, which is adequate for our current
needs but hardly ideal, to the proposed lay by as described, and achieve
our goal of a higher degree of operational efficiency and better cost
effectiveness.
The first of NDC’s final proposals calls for the destruction of the
Turner building and the construction of a new building stretching from
the Auto Clinic to the intersection of Sycamore and Ethan Allen, with
TPSS serving as the anchor tenant. Under this scenario, all non-truck
vehicular traffic would either enter the development off Carroll Avenue
or via Columbia Avenue. We are amazed that the latter
would even be suggested, as it means that every car visiting the Co-op,
the other tenants in the development, and the other Junction businesses
would either turn left or right off Ethan Allen onto Sycamore and then
onto Columbia or approach the entrance to the parking garage from the
west on Columbia. Interrupting the residential traffic pattern in our
adjacent neighborhood, both in times of use and volume will undoubtedly
cause incredible traffic issues for our neighbors in this residential
area, which we have no desire to be a party to.
As you may remember, when the Co-op was asked at a Council meeting early
in the RFP process, why the Council should take the business needs of
the Co-op seriously when we didn’t even have the assurance that we would
be able to stay in the Turner building beyond the lease then in effect,
I negotiated a 20-year lease with the Turner estate. We are in only
the second year of that lease.
I am very pleased that Mr. Washington refers to our site as “the prime
corner real estate at the intersection of Sycamore and Carroll Avenue.”
It is, indeed, prime real estate and a perfect location for our grocery
store, where it is visible to passing vehicles and pedestrians alike.
NDC’s second proposal “would expand the Co-op’s space west onto the
City’s site, with adjacent retail built out along Carroll Avenue, maximizing
potential street frontage. A ‘lay by’ lane along Carroll Avenue would
allow large truck deliveries to be made during the off peak hours.”
TPSS receives goods via 18-wheelers every day; sometimes three of them
come on the same day. We cannot control when they arrive. Mr. Washington
does not offer a definition of “peak hours” but goes on to state. “During
typical business hours the ‘lay by’ lane could serve as a pick up/ drop
off area, a bus lane or short term parking. A subgrade garage would
provide longer term parking and could be accessed via Columbia Ave.”
(Please see discussion of accessing the garage via Columbia Avenue earlier
in this letter.)
Mr. Washington goes on to state that a "major drawback of Concept 2
(or any plan that expands the Co-op through an addition to the Turner
building) is that the Co-op would be required to shut down for a number
of months while the old building is integrated into the new addition."
This statement is inaccurate. If an expansion is done through careful,
cooperative planning, it is possible that business continuity would
be minimally interrupted. This is not unprecedented as there are many
examples both locally and regionally where the operations of an existing
ongoing business were minimally impacted when they either modified the
existing interior space for new use, or expanded into additional space
built directly adjacent. I personally watched this happen at the Giant
in Aspen Hill. They decided to acquire and expand into the old CVS location
and did so without closing entirely, even for a day.
When NDC first shared with us that our only unloading option would be
the lay by and we responded that it was unfeasible from a business perspective,
they asked us to come up with a plan that would work for the Co-op.
Our architect asked NDC to provide us with some basic parameters, such
as how much developed space they would need to meet their projected
ROI. We were told this information was unavailable, and we should just
come up with something that worked for us. So we spent thousands of
dollars and had our architectural firm come up with something that could
provide access and egress for the trucks while maximizing the remaining
developable space. NDC almost immediately rejected this plan.
We are surprised that Mr. Washington states, “We agree that this site
plan would improve the operational efficiency of the Co-op (in our opinion
marginally).” NDC has not studied how the Co-op does business and is
not in a position to decide that an efficient unloading scenario would
benefit us only “marginally.” He goes on to say that NDC does not feel
this plan would be in the best interest of the City and the community
and therefore does not support it. We at TPSS feel it is in the best
interest of the City and our community to continue to provide the type
of services we have provided for the past 35 years. During the past
few years, we have heard people say they hope that the development will
provide a place for people to bump into each other and chat and to feel
a sense of place. The Co-op is already a gathering place for the community,
with people stopping to chat under the awning, sitting and eating at
the picnic tables outside, and catching up in aisles as they shop.
Towards the end of his update, Mr. Washington says that he will be asking
TPSS to facilitate a meeting between the representatives of the Turner
estate and NDC, as calls made by NDC to them have not been returned.
At least a month ago, I spoke with the Matthews family and told them
that NDC would like to discuss with them acquiring their building. They
asked me to relay to NDC that they were not interested in selling the
property or in any way damaging the long-term positive relationship
they have had with the Co-op. I passed this information to NDC, who
has subsequently, according to them, made additional phone calls that
have gone unanswered. I have called the Matthews family twice in the
past two weeks and left them messages urging them to respond directly
to NDC. Of course, it is entirely up to our landlords, who continue
to love the Takoma Park community although they are no longer located
in the area and who have been unfailingly loyal to the Co-op and our
needs, whether or not they want to pursue a conversation after they
have let their feelings on the situation be known. We will not risk
our relationship with them by pressing them further on this matter.
Soon after the RFP was released in January, 2014, I approached the City
and asked that they keep in mind the small size of the lot and the Co-op’s
viability need to have safe, efficient access to an unloading area for
very big trucks. When six developers submitted proposals, I met with
them to discuss Co-op participation in the development and review the
delivery, parking, and business continuity needs. Several developers
stated that the lot was too small to accommodate the trucks and their
hoped for ROI. When the field was narrowed to four, I again met with
them, including NDC. I again discussed the truck access needs. The field
narrowed to two, and TPSS endorsed NDC’s plan, with an unloading scenario
almost identical to what is in place now, which the Council then selected
as the winning bid.
Since April, 2014, TPSS has spent thousands of dollars and hundreds
of hours making every possible effort to work cooperatively with NDC
to make Co-op expansion and Junction redevelopment a reality. We hired
an architect, development consulting company, and real estate attorney
to help us handle the process professionally and responsibly, and we
were comfortable in the knowledge that it is City municipal code not
to allow changes in provisions of a bid after the opening of bids that
would affect “fair competition.” Had other bidders been given a chance
to revise their post-award bids, they, too, might have proposed economic
and/or different design elements that may have been better for the City
and, hopefully, the Co-op. So we had no reason to even think that such
radical changes as NDC now proposes would be considered or approved
by the Council.
Thank you for your consideration.
Marilyn Berger
TPSS Co-op Expansion Project Manager
TPSS Expansion/Junction Redevelopment
Update
October 18, 2016
On July 27, The Takoma Park City Council
agreed to enter into a Land Development Agreement (LDA) with Neighborhood
Development Company (NDC) for the redevelopment of the municipal parking
lot adjacent to the Co-op. Since that time, NDC and TPSS have been in
regular communication, sharing information and ideas about how to meet
community desires as well as the Co-op’s business needs (safe and efficient
entrance and egress for large delivery trucks, sufficient customer parking,
and continuity of operations during construction) as the project moves
forward.
Representatives from NDC have met with the Co-op’s Expansion Team several
times, with another meeting being scheduled as this email reaches you.
NDC offered a solution to the truck access and unloading challenge by
having the Co-op unload deliveries in a pull-out area off Carroll Avenue.
After we explained why this plan would not work for us ( among other
issues -unloading up to 11 pallets of deliveries of frozen and refrigerated
items and produce and manually transporting them over 100 feet outdoors
in all types of weather , pedestrian and car safety concerns voiced
by the fire department, inefficiency of resource use), NDC came back
with some new designs. The teams got together and brainstormed, and
after deciding that none of these designs worked for both Co-op and
developer, NDC invited us to come up with a plan that could work for
us.
Our architect designed a plan that met the Co-op’s needs and attempted
to address the needs of NDC as we know them. We shared these with NDC,
and NDC’s traffic engineer reviewed the plans and made some important
adjustment suggestions. Our architect included their traffic engineer’s
suggestions in a modified plan that we submitted to NDC for review and,
on October 11, we met with NDC and their team to discuss the plan. (Also
in the meeting as observers for the City were the assistant city manager
and mayor.) Attending that meeting last week were representatives from
the architectural firm (Streetsense) NDC hired recently. Since this
was our first meeting with Streetsense, there was a lot to cover. We
planned to meet again as soon as Streetsense had a chance to come up
to speed and evaluate all the proposals that have been put forward to
this point. We are hopeful that they will be able to share their perspective
on these designs soon and continue forward with the design process.
As a reminder, terms of the LDA call for the Co-op to sign a Letter
of Intent (LOI) with NDC to occupy space in the new development by November
29. If no letter is signed by then, the City Council has the option
to extend the deadline another month, or NDC will be free to search
out a new anchor tenant. While we are encouraged by the cordial brainstorming
we have shared with NDC, we cannot sign an LOI until we agree on a development
design that will meet the Co-op’s business needs during and after construction.
TAKOMA JUNCTION DEVELOPMENT UPDATE
September, 2016
Over the summer, much work has been done
towards the expansion and redevelopment of the municipal parking lot
adjacent to the Co-op. In late July, the Takoma Park City Council approved
the signing of a Land Development Agreement (LDA) with Neighborhood
Development Company (NDC). Listed in that agreement is a timeframe within
which it is hoped NDC and TPSS will produce a Letter of Intent for the
Co-op to rent space in the new development for our expansion. Links
to this document, as well as the City’s description of the Junction
Redevelopment and timeline of events, can be found at:
https://takomaparkmd.gov/initiatives/takoma-junction-redevelopment/
At the time the City Council approved the signing of the LDA, they also
created the Takoma Junction Community Consultation Process Advisory
Committee to assist with community outreach for the Takoma Junction
Redevelopment project. The committee consists of seven voting members
and will remain in effect during the period of community input in the
design of the project.
The Committee’s tasks, as outlined in Takoma Park Resolution 2016-26
are to
- Clarify with NDC, in coordination with City Staff and the City Council, the aspects of the project’s program and design for which community input is important for the project outcome;
- Identify the best means for community members to engage in the development process;
- Determine the details of meetings needed to ensure sufficient opportunity for community input such as number and frequency of meetings, locations, times, format;
- Assist with promotion and outreach regarding meetings;
- Provide opportunities for on-line community feedback for community members who are unable to attend meetings.
NDC and the Co-op Expansion Team continue
to meet on a regular basis. NDC's traffic engineer has come up with
some new scenarios as an alternative to the cutout off Carroll Avenue
that they offered as a solution to the truck unloading issue - the major
stumbling block to progress. Our architect is also working on some alternatives
that could meet Co-op unloading, parking, and business continuity needs
while also meeting the developer's profitability goals.
NDC recently drilled some borings to gather information for a geotechnical
analysis of the land under the pavement. This is the next step in the
process and will help the developers determine the composition of the
ground and what they will need to do to ensure that it will be able
to support the planned building and underground parking lot.
TPSS has an outstanding team working for us, including an incredibly
able and dedicated architect, advisors from the Development Cooperative,
and one of the DC area's top real estate attorneys. Watch for more details
as we move forward on our long-anticipated expansion.
Please feel free to contact Marilyn Berger, Expansion Project Manager
at mberger@tpss.coop if you have
any questions or concerns.
TAKOMA JUNCTION DEVELOPMENT NEWS
Updated July 25, 2016
CITY COUNCIL TO VOTE ON LAND DEVELOPMENT AGREEMENT WITH NDC
CITY COUNCIL MEETING - Wednesday, July 27, at 7:30 PM in the Community
Center
We at the Co-op would like to thank our wonderful members for your support
as we work our way through the Junction Redevelopment and our store’s
expansion. You are incredible! You have signed a petition, sent emails,
attended the Open House, called the City Council and Mayor, and spoken
up at Council meetings in order to share how much the Co-op means to
you individually and to Takoma Park as a whole. Our cooperative effort
is far from over.
We invite you attend the City Council meeting this coming Wednesday,
July 27, at 7:30 in the Community Center, when the Council is scheduled
to vote on the Land Development Agreement with NDC. This document formalizes
the relationship between the City and NDC, formally naming them the
developer of the Junction parcel. Council will also consider the appointment
of members to the committee that will work to create a framework for
community input into the final design for the Takoma Junction redevelopment.
After that, the Co-op and NDC will work to create and finalize a Letter
of Intent, or LOI, that will give both parties an agreement to ensure
that the Co-op’s needs are realized in the development.
We will continue to keep you up to date on the progress of the development
and hope that our continued good faith efforts lead to an expanded Co-op
with even better selection, additional price points, and continued service
to you, our valued members and community shoppers.
|
NDC'S PROPOSED "LOADING
DOCK" SOLUTION |
|
Click here for the original NDC proposal in PDF format. |
 Click here for their proposal viewed in the real world. |
TAKOMA JUNCTION DEVELOPMENT OPEN
HOUSE
Updated July 14, 2016
TAKOMA JUNCTION DEVELOPMENT OPEN HOUSE
Monday, July 18, 2016 7:00-9:00 PM
Takoma Park Firehouse
PLEASE ATTEND TO LEARN MORE AND ASK YOUR QUESTIONS
The Takoma Park City Council is offering the community an opportunity
to speak directly with representatives from NDC and the City about the
development and its impact on the Co-op.
The Council is about to sign a Land Development Agreement (LDA) with
Neighborhood Development Company (NDC) for construction on the municipal
parking lot adjacent to the Co-op. On July 13, the City staff presented
a draft LDA to the Council at a public meeting. This meeting can be
viewed here:
http://takomapark.granicus.com/MediaPlayer.php?view_id=14&clip_id=2150
and the LDA and Ground Lease can be seen here:
https://documents.takomaparkmd.gov/government/city-council/agendas/2016/council-20160713-5-rev.pdf:
- The Council is urging that TPSS and NDC reach an agreement on a Letter of Intent (LOI) concerning the terms of the Co-op’s role as anchor tenant.
- TPSS and NDC have not reached an agreement on an LOI because NDC has not been able to propose a plan that would guarantee the Co-op will stay open during and after construction. Key Co-op issues concerning NDC’s current site plan include:
- LOADING DOCK – The permanent NDC plan, not just the temporary one, provides NO loading dock for the large trucks that deliver fresh products to the Co-op EVERY DAY of the week. Thousands of pounds of products would be unloaded in a cutout off Carroll Avenue and manually transported over 100 feet in all kinds of weather.
- PARKING DURING YEAR OR MORE OF CONSTRUCTION- Parking would be in the Sycamore Avenue lot, where the 19 current spaces would be shared by small delivery trucks, trash and recycling dumpsters and trucks, compost bins, and a parcel pick-up area where customers who will be parking throughout the neighborhood can pick up their purchases after retrieving their cars.
On Wednesday, JULY 20, community
members will have a chance to share their comments on the Land Development
Agreement at the CITY COUNCIL WORK SESSION, 7:30 PM (CC Auditorium).
The Council is scheduled to vote on two resolutions concerning the Junction
Development on Wednesday, JULY 27, 7:30 PM (CC Auditorium)
Voting Session:
-Resolution Authorizing Execution of a Development Agreement with Neighborhood
Development Company for Redevelopment of Takoma Junction
- Resolution Establishing the Community Consultation Process Advisory
Committee for the Takoma Junction Redevelopment and Appointing Members
to the Committee
THE FUTURE OF OUR CO-OP IS AT
RISK
March 17, 2016
At the Takoma Park City Council meeting on March 16, NDC, the company
chosen to develop the municipal lot adjacent to the Co-op, presented
an update of the status of the project. Unfortunately, despite our repeated
requests, in the year since they were selected, NDC has not had one
substantive discussion with the Co-op Expansion Team on our basic needs
to survive during and after construction. There is still no workable
design of a loading dock or plan of how our delivery trucks will safely
enter and exit the development without blocking all the lanes of Ethan
Allen Avenue as they maneuver to back into the lot. There is no plan
detailing how the Co-op will stay open for the year and half that construction
is projected to require. And the latest plan NDC has shared with the
Co-op shows an almost 40%
DECREASE in parking from that which is currently available on
the city lot. Any reduction in parking conflicts with the stated goals
of support for current businesses, new retail and an expanded Co-op.
The Council has set aside a special time at their next meeting on
Wednesday evening, March 23, at 7:30 to hear comments from the community
on NDC's presentation and the development at the Junction. You can watch
NDC's
March 16 presentation and discussion with the Council. It begins
one hour into the video of the Council meeting.
Your community Co-op needs your support. Please make every effort to
come to the meeting on March 23 to reaffirm the importance of the Co-op
to Takoma Park.
HELP SAVE YOUR CO-OP!
March 17, 2016
Please plan to attend the City Council meeting on Wednesday, March
23 at 7:30 p.m. at the Takoma Park Community Center.
The Co-op has received NO assurances that we will be able to survive
and thrive during and after the 1½ years of planned construction on
the municipal parking lot.
Speak up during the special time for community input on the Junction
development and ask the Council to ensure the future of the Co-op.
The Council has heard from the developer. NOW LET THEM HEAR FROM YOU
on Wednesday, March 23 at 7:30 p.m.
Additional Important News on Co-op
Expansion
March 15, 2016
As we hope you already know, the Takoma Park City Council has scheduled
a discussion with Neighborhood Development Company regarding Takoma
Junction Redevelopment. This public meeting is tomorrow night, Wednesday,
March 16, starting at 7:30 in the Community Center Auditorium.
Because the Council knows how important this issue is to our entire
community and the future of the Co-op, they have announced a special
time at the Council meeting the following week to hear public
comments on the Junction Redevelopment. This time specifically scheduled
for community comments is during the Council meeting on Wednesday, March
23. After a closed session on another matter at 6:30, the open session
will begin at 7:30, and redevelopment comments from the public are first
on the
agenda.
In order to provide the most constructive and useful feedback to our
Council on the 23rd, we urge you to attend the meeting tomorrow night
and listen attentively to the latest plans for the Junction. We will
be sending out an update after tomorrow's meeting and look forward to
seeing you at both Council meetings. Thanks for your continued support
as we work cooperatively with NDC and the City to ensure the continued
success of the Co-op throughout the redevelopment process.
Please feel free to contact Marilyn Berger, Expansion Project Manager
at mberger@tpss.coop or 301-891-2667
if you have any questions or concerns.
Important Update on Co-op Expansion
March 10, 2016
The Takoma Park City Council has scheduled a discussion with
Neighborhood Development Corporation (NDC) about the status of
the Takoma Junction redevelopment at the Council meeting on Wednesday,
March 16. The public work session begins at 7:30 PM. We hope that
you will be able to come to hear the latest. You may want to take advantage
of the "open mic" section of the meeting to speak in support of your
Co-op and our expansion and business continuity needs. Please pass this
information on to any listservs you are part of, since the future of
the Co-op is so important to our entire community.
Below is a more complete discussion of the status of the project
as we currently know it:
Thanks to overwhelming community support, the Co-op is experiencing
unprecedented sales increases and membership growth. TPSS is bursting
at the seams! We are anxiously anticipating our store expansion so that
we can provide even more selections at a variety of price points to
even better serve the community. However, progress towards our expansion,
which, as you know depends on the Takoma Junction development, has been
much slower than anticipated due to the complex process the City of
Takoma Park has had to follow. The City Council meeting on Wednesday
will be the first time in quite a while that the redevelopment of the
municipal parking lot will be publically discussed.
Over two years ago, Takoma Park issued a Request for Proposals to develop
the parking lot adjacent to the Co-op. Last April, the Council selected
Neighborhood Development Company as the winning bidder. Now, almost
a full year later, the City and NDC are still negotiating a Land Development
Agreement, and the original project completion date of April, 2019 had
been pushed to April, 2020, at the earliest. Last July, at NDC's request,
the Co-op provided detailed documentation of our expansion and business
continuity needs as a starting point for the cooperation and compromise
that was required by the Council in the City's resolution authorizing
negotiations with NDC.
This resolution states "...the Council seeks the following: early
resolution between NDC and the Co-op regarding the Co-op's long-term
role as an anchor tenant in an expanded structure at the Junction."
However, we have not reached this important milestone yet.
We hope that there will be much positive discussion at the Council meeting
next Wednesday and look forward to seeing you there. You may view the
most current meeting schedule as well as rolling agendas through the
end of 2016
by clicking here.
Please feel free to contact Marilyn Berger, Expansion Project Manager
at mberger@tpss.coop or 301-891-2667
if you have any questions or concerns.
Expansion/Development Update
December, 2015
Over the past many months, the TPSS Expansion Team has met several times with our Neighborhood Development Company liaison. NDC is still working out the details of their agreement with the City of Takoma Park, so there isn’t much news to share right now. They expect to sign the agreement in February, at which time more information should be made public. The latest development timeline that was shared with us shows that the new space will not be available for occupancy for many years.
Expansion/ Junction Redevelopment
Update
April 3, 2015
The Takoma Park City Council has selected
the team of Neighborhood Development Company (NDC) and SORG Architects
as the finalist to redevelop the municipal lot adjacent to the Co-op.
The Council expects to vote on a resolution for the selection at their
meeting on April 13, 2015. The resolution will not turn the land over
to NDC; rather, it will state that the Council plans to work with the
selected developer, who will then begin investing more resources in
the effort.
According to Council Member Tim Male, the resolution or an accompanying
document should address the following, which could be subject to change:
- A deadline by which NDC and the Co-op will reach an agreement on their relationship, the nature of the Co-op’s occupancy (condo, rental, subdivision of lot), and the Co-op’s part in the community planning process.
- The priorities defined by the Council, including highest importance given to retail, protection of 90% or more of the wooded site, development footprint of 15,000-25,000 square feet, adequate parking, and provision of community space.
- Specifics of the traffic studies needed
- A timeline of the next steps
While we continue
to believe that the TPSS proposal submitted in response to the RFP issued
in January, 2014 is the one that best meets the needs of the community
and our store, we believe that NDC will prove to be a good partner.
So far, NDC has shown an openness and willingness to work with the Co-op
to address our need for safe access to our loading dock for 18-wheelers,
adequate parking during and after construction, and business continuity
throughout the process. NDC has a good reputation in the communities
in which they have built and within the development community.
The TPSS Expansion Team will be meeting with NDC regularly as we move
forward with Co-op growth and other development on the lot.
Marilyn Berger
Expansion Project Manager
The official City of Takoma Park RFP information is here.
Expansion/
Junction Redevelopment Update
January 13, 2015
The City Council
held a work session on January 12 to discuss the latest financial information
submitted by the four entities currently under consideration to develop
the Municipal lot in response to a series of questions from the City.
This is very important information that could have a major impact on
our Co-op. Of particular note is Question #6: The Takoma Park Silver
Spring Co-op was identified as the anchor tenant in your original proposal.
Provide a short narrative describing the status of your negotiations
with the Co-op and steps taken to secure a letter of commitment or intent
from them.
The developer responses can be found at:
http://citycouncil-takomapark.s3.amazonaws .com/agenda/items/ 2015/011215-7.pdf
This issue is so important to the future of the Co-op that our Expansion
Team decided to submit our own responses to these questions to the Council
even though our proposal is not officially under consideration.
TPSS Co-op responses can be found at:
http://www.tpss.coop/PDFs/ Expansion/Financial _Questions_ Regarding_Proposal.pdf
TPSS EXPANSION/TAKOMA
JUNCTION REDEVELOPMENT UPDATE
December 29, 2014
While the City Council
has been in recess, we at the Co-op have been very busy preparing for
the next phase of the Takoma Junction Redevelopment project. Although
the City is evaluating proposals from four developers, we are hopeful
that they will consider ours when they reconvene in January. The developers
have been given the opportunity to revise their proposals, and their
plans, updated in mid-December, can be viewed on the Takoma Park website:
www.takomaparkmd.gov/ hcd/takoma-junction-rpf.
Our Expansion Team has been working with the country’s top expert on
co-op expansions to solidify our financial package so that we are prepared
to show the Takoma Park Council that TPSS has the resources necessary
to make our plan work. We have also met with many members of our community
to solicit their input on what the expanded TPSS and redeveloped Junction
parking lot should look like. Our concept, which blends open green space
with an expanded Co-op and space for some small local businesses, can
be found by clicking the image below:
NEXT IMPORTANT
JUNCTION REDEVELOPMENT COUNCIL DATES:
January 12 -- Discussion of four developers’ financial information
January 21 (Wednesday)-Council work session to receive comments on Takoma
Junction
February 3 and possibly 10 -- City Council work session to receive comments.
Questions? Comments? Contact "expansion@tpss.coop".
Junction
Redevelopment Open House:
Tuesday, November 18th 6:30 to
9:30
Takoma Park Community Center - Azalea Room
The City is hosting an open house where people can meet the developers
and the Co-op in an informal setting and ask questions about their
proposals. This is a good chance for you to bring your concerns
directly.
Redevelopment
Update - November 17, 2014
NEW! Updated Views of the Revised TPSS Proposal:
Download
the latest Acrobat Reader here.
TPSS Co-op Site Plan B2
TPSS Co-op Site Plan C
TPSS Co-op Site Plan D
TPSS Co-op Site Image A
TPSS Co-op Site Image B
TPSS Co-op Site Image C
TPSS Co-op Site Image D
TPSS Co-op Site Image E
TPSS Co-op Site Image F
TPSS Co-op Site Image G
TPSS Co-op Site Image H
Redevelopment
Update - November 7, 2014 (revised 11/17/2014)
City staff took the more than 200 questions they had received from
residents and combined them into eleven broad ones. These were presented
to the four developers, who were asked to submit responses by October
27.The City Council held a work session on November 3 that was mainly
devoted to a discussion of their answers. Questions and answers
can be found on the Takoma Park website.
Next events to note:
Thursday, November 13, there will be a meeting at Historic Takoma,
7328 Carroll Avenue. The purpose of this meeting is to brainstorm
and build a community vision of how to develop the Junction. If
you cannot make it, please forward your ideas to
c.
Tuesday, November 18, 6:30 to 9:30 PM, at the Community Center.
The City is hosting an open house where people can meet the developers
and the Co-op in an informal setting and ask questions about their
proposals. This is a good chance for you to bring your concerns
directly.
Monday, November 24 is scheduled to be the final Council work session
of this year, and it will be devoted to further discussion of the
redevelopment proposals.
A letter from
TPSS Co-op to Prospective Municipal Parking Lot Developers about
the needs of the Co-op during the development process
BusinessContinuity Must-Haves.pdf
Municipal Lot
Redevelopment Update - October 6, 2014
MunicipalLot Redevelopment Update2014-10-06.pdf
THE CITY COUNCIL
VOWS TO WORK WITH TPSS CO-OP, SEPTEMBER 29
Click here to watch the video of the Council Work Session.
(Note: this video is 4 1/2 hours long)
Thank you to all who turned out to pack the room at the Community Center on September 23rd. Here are the details of the four proposed plans for the Takoma Park site.
Click on any image to open the PDF presentation (Acrobat Reader required).
LATEST NEWS ON THE
DEVELOPMENT OF THE MUNICIPAL LOT AND THE FUTURE OF OUR CO-OP - September
29 2014
CouncilWorkSession _September29.pdf
To see the Co-op's
Expansion and Takoma Junction Redevelopment plan, click the icon:
BREAKING NEWS ABOUT THE REDEVELOPMENT OF THE MUNICIPAL PARKING LOT ADJACENT TO YOUR CO-OP - Update September 8, 2014
On September 5, the City of Takoma Park announced the four finalists for the redevelopment of the City owned parking lot adjacent to TPSS. They are The Ability Project, Community 3 Development, LLC, Keystar LLC and Eco Housing, and Neighborhood Development Company. The Co-op’s proposal will not be forwarded by the City Manager Brian Kenner to the Council for consideration.
The details of the finalists will not be released for two weeks. According to Mr. Kenner, each offers “a vibrant mix of commercial and residential uses, with green space, sustainable features and a multitude of public amenities.” The City had asked for proposals “that would act as a stimulus to the commercial district and locally-owned independent businesses; improve the aesthetic appeal of the district; and be contextually sensitive and environmentally sustainable.” There was no requirement in the Request for Proposals that housing be included, and the TPSS proposal incorporated the themes for development identified by the Takoma Junction Task Force in 2012: Community, Localism, Environment, and Heritage without including building houses on the lot.
Our proposal called for the expansion of the store in order to offer a broader product mix with a wide variety of price points and provide new space that would allow us to sponsor regular community programs that would continue to foster a strong Co-op/community relationship. Our plans also included space for local businesses, such as a wine and beer shop, a coffee shop or café and a credit union, all in an area lush with gardens, trees, and lawns. You can see the TPSS proposal by clicking here.
We are disappointed that the City planners have decided not to share our proposal with the Council to show there is an alternative to building housing on the lot while revitalizing the Junction. Of utmost importance for the survival of the Co-op, no matter which developer is chosen are: (1) A guarantee of business continuity during construction (TPSS must remain open for business throughout), (2) Access to our loading dock for 18-wheel trucks five or six days a week during construction and after, and (3) Sufficient available parking.
The four finalists will make public presentations on Tuesday, September 23 at 7:00 p.m. in the Takoma Park Community Center Auditorium. Please tell your friends and neighbors to attend and give input to developers, City Council and City Staff.. The City Council will have a work session to discuss the proposals on Monday, September 29. The agenda for the meeting will be available in advance on http://www.takomaparkmd.gov /citycouncil/agendas. There will be additional opportunities for Council and public discussion of the proposals in the coming months. Please watch for the information we will be sending you, and please help us protect the future of the Co-op by using every opportunity to show your support.
Please feel free to contact me with any suggestions.
Marilyn Berger, Project Manager
mberger@tpss.coop
301-891-2667
The full TPSS Co-op Redevelopment Proposal can be viewed in PDF format here.
TPSS Expansion/Municipal Lot Development
Update June 10, 2014
The deadline for submission of responses to the Request for Proposals (RFP) for development of the municipal parking lot adjacent to the Co-op was May 28. A total of seven proposals were received from a variety of organizations from throughout the region.
Takoma Park’s Department of Housing and Community Development has begun a technical review of the submissions. The City has the right to investigate specific development proposals, request clarification of the contents of any proposal, require additional information, explore proposed partnerships or financing options, and begin preliminary negotiations with one or more developer during this period. To the extent permitted by law, the City will not disclose any proprietary or confidential material included in the proposals. Only proposals that comply with all the objectives, provisions and requirements of the RFP will be considered for review. Once the review is completed, up to four groups may be invited to present their proposals before the community and the City Council.
TPSS has submitted a proposal that most likely differs from the rest. Our plans incorporate the themes for development identified by the Takoma Junction Task Force in 2012: Community, Localism, Environment, and Heritage. While it is likely that many or all of the other bidders have included high density housing units where the parking lot now stands, we have focused on doubling our retail square footage in order to increase our core service to our community and customers by enabling us to purchase more products from local farmers and businesses, offer a wider range of products and price points, and provide more well-paying jobs with a great benefits package. The development we are proposing will bring more shoppers to the Junction not simply to take advantage of our greater selections, but to visit our planned wine and beer shop, a large, modern community gathering place, a coffee shop or cafe, possibly a credit union, and other small, local businesses that may have been looking for a home. All will be located in a pleasant environment that encourages foot traffic and invites shoppers and community members to linger.
The City’s internal review is expected to be completed in mid to late summer with community presentations scheduled soon thereafter. Until then, please continue to shop and support the TPSS Co-op and think about what products and services you would like to see offered in a larger store.
Previous entries...
As an important part of our efforts to fulfill our mission of promoting healthful living by offering wholesome food, high quality products and community resources in a clean, friendly cooperative grocery store that our members own, TPSS management and Board have been considering the possibility of expanding our store for quite a while.
We have been in our current building since1998. Our current facility offers about 5500 square feet of selling space. Food retailers often begin to think about expanding or moving when annual sales reach $1000 per square foot. Our annual sales far exceed that industry standard, and we would like to double the retail space available to us.
Our goals for this undertaking are to:
· Provide us with an opportunity to offer a broader
product mix, with a wider variety of price points,
· Create a store that is committed to responsible energy use and
conservation,
· Provide new space that will allow us to sponsor regular community
programs that will continue to foster a strong Co-op/community relationship.
Last summer, TPSS commissioned a feasibility study for our planned growth and expansion. The report presented the pros and cons of several options:
· Stay in our existing building and expand eastward
into the small parking lot.
· Stay in our existing building and expand westward into the municipal
parking lot.
· Leave our building and relocate to a new building on the municipal
lot or elsewhere.
Our efforts have taken on more urgency, as the Takoma Park City Council issued a Request for Proposals for the development of the municipal lot. It is vital to the future of the Co-op for us to retain control of access to our loading dock and to offer sufficient parking for our shoppers. The Council is hoping to receive proposals that will act as a stimulus to the commercial district and locally-owed, independent businesses; improve the aesthetic appeal of the district; and be contextually sensitive and environmentally sustainable. We will be submitting one or more proposals that address the Council’s goals while enabling us to realize our expansion dreams. To support this initiative, we have created a capital reserve fund of $500,000 and are committed to raising sufficient debt and equity financing.
Please watch your newsletters, email blasts, and our website for up-to-date information on this very important effort.
Board Letter
Official Statement
Request for Proposals - Takoma Junction Site
Expansion project wiki for committee members
