DMPED & The Tapeworm vs. DC's Middle Class

DMPED & The Tapeworm vs. DC's Middle Class

I fully support the rhetoric coming from the Bowser administration, “Pathways to the Middle Class”. “We” must find ways to partner with the administration in achieving the goals of maintaining DC’s Middle Class and preserving pathways to it. Unfortunately, overall city policies and those of this administration are designed to squeeze the Middle Class out of existence and put in place an Apartheid like system made up of the so-called “Market Rate Class(es)” and the “Affordable Class(es)” preventing access to the Middle Class. This Apartheid like system, which I call “Genny Crow” after its great grandfather “Jim Crow” evolved out of the Williams Administration and developed through the Fenty and Gray Administrations; however, in spite its best of intentions the Bowser Administration is the first to formalize structurally “Genny Crow” with the creation of a Deputy Mayor for the “Affordable Class(es)”, Courtney Snowden and the Deputy Mayor for the “Market Rate Class(es)’, Brian Kenner. This split by the Bowser Administration is an honest admission that DC’s economic development policies over the last 11 years or so have lacked energy, depth and breadth needed grow, maintain and sustain “Pathways to the Middle Class” and that most of the economic growth experienced over the last 11 years of has been consumed or stolen by “The Tapeworm”. And now in the 50th year since Selma marches, we as a city are rationalizing and resigning ourselves to a reality that Apartheid is legitimate government policy as long it is not explicitly based on racial segregation. Instead of a policy rationalization and resignation, I urge instead a policy of destroying The Tapeworm ensuring “Pathways to the Middle Class”.

I’m often challenged to offer solutions instead of just critiques. Step One must be to starve and then kill the Tapeworm. The Tapeworm is maintained and sustained by DMPED’s Real Estate Development office and affiliated New Communities Office. The Real Estate Development office must immediately be defunded and assets, some personnel under its control transferred to the Deputy Mayor for the “Affordable Classes” along giving it management of DHCD. Walter Reed and St. Elizabeth probably should be spun off. The Real Estate Development office employs at least 8 people making over $120K per year plus benefits. Yet, it took that office 7 years to negotiate a development deal for Hill East. Then leveraging approximately $6M to $8M in public assets negotiated a deal which will create not a single Pathway to the Middle Class for a DC family, but will feed the Tapeworm $28M in equity. Similarly after working the Park Morton New Communities project for 9 years spending at minimum $20M produced at best 11 apartment units applicable to the Park Morton New Communities effort. Again not one Pathway to the Middle Class. This same office after restarting the Park Morton New Communities process about a year ago recently attended several community meetings(in the last 3 weeks), basically stated (while collecting salaries of over $120K each) that they, did not want to provide project timeline dates for Park Morton New Communities, because they did not want the community and residents of Park Morton to be able to hold them accountable. WTF?

Defunding DMPED’s office of Real Estate Development and transferring its assets will not immediately create, “Pathways to the Middle Class”, but it is a prerequisite. As it will immediately clear key obstacles in path to the Middle Class, wealth building opportunities and growth in disposable income for DC families. For example the Hill East deal will result in $28M in equity for the developer, but zero in homeownership equity for DC families. Home equity is one of the primary sources of wealth for entering and sustaining the middle class. The city would have been better off auctioning off the Hill East site and funding trusts for 100 DC General families of $140K each to help create “Pathways to the Middle Class”. Another path way to the middle class is increasing disposable incomes. DMPED’s Real Estate Development office structured the deal at Hill East to maximize rental rates, directly reducing disposable incomes. DMPED achieve the higher rents not only by building them into the deal structure, but by constricting the supply of housing. Delaying the current Hill East deal for 7 years and purposely sitting on many other Hill East parcels driving up rental prices by holding back supply. If the Mayor and Council are serious about affordability and “Pathways to the Middle Class” DMPED’s office of Real Estate Development will be dissolved in this budget cycle. The bottom line is that the Tapeworm consumes “Pathways to the Middle Class’, DMPED’s Real Estate Development office supports the Tapeworm, so the Real Estate Office consumes, not supports “Pathways to the Middle Class”; therefore, the office must be dissolved to create and maintain “Pathways to the Middle Class”. Instead of pathways for the Tapeworm to suck the life out of the Middle Class.

Re:DMPED & The Tapeworm vs. DC's Middle Class

"As William Julius Wilson said in a talk last night, neighborhood improvement with the addition of higher income residents isn't the problem per se, displacement is the problem"

 Richard do the math Tapeworm economics displaces. In Columbia Heights/Ward 1 over 50% of the neighborhood's Black population (all income levels) has been displaced in less than 10 years and a significant portion of Ward 1's Latino Population has also been displaced. A direct and significant contributor to this displacement is the Tapeworm and DMPED's Real Estate Development office. This is the economic development model you are suggesting for Wards 7 & 8, one driven by displacement and segregation. Further you seem to be suggesting that higher income people will only be attracted to neighborhoods undergoing displacement or undergirded by de facto segregation?

If DM Snowden, who I found impressive in her run for city council, is charged with driving greater economic opportunity and paths to the Middle Class and not just be an overseer/caretaker (ie. The historic bureau of Indian Affairs), then lets check the math. Does her portfolio of agencies have the capacity to achieve the stated goal, for any reasonable person the math says, “No.”, especially when compared to DMPED.

Courtney Snowden - Deputy Mayor of Greater Economic Opportunity (Affordable Classes) Portfolio:

- Department of Employment Services (DOES)
- New Communities Initiative
- Commission on African American Affairs
- DSLBD
- Commission on Fatherhood, Men and Boys.

Brian Kenner - Deputy Mayor for Planning & Economic Development (Market Classes) Portfolio:
- DMPED
- Office of Planning (OP)
- Department of Housing & Community Development (DHCD)
- Department of Transportation (DDOT)
- Department of the Environment (DDOE)
- Taxicab Commission
- Motion Picture & Television
- Arts & Humanities
- Office of the Tenant Advocate

Clearly the portfolio for DMGEO lacks the gravitas and tools to achieve the stated goals. The gravitas and tools necessary to achieve the goals of DMGEO belongs to DMPED. In particular the office of Real Estate Development and its public land portfolio the fuel upon which the Tapeworm feeds. If DMGEO is to be respected as more that a political stunt or worst the acceptance of Modern Apartheid as an economic development model the math must be corrected. The solution to this mathematical imbalance is straight forward, move additional resources from DMPED to DMGEO. At a minimum DMPED's Real Estate Development land portfolio, DDOT and DHCD would be transferred to DMGEO. Otherwise current structure continues as this report below describes the city policies:

“These practices have created a dual housing market within the District and its metropolitan area—one housing market for Caucasians, Hispanics, and Asians, and a separate housing market for African Americans…
In a 180 degree reversal of the usual pattern of integration and regegregation, the District of Columbia has a long history in which integration is the period between the first wealthy white household moving into a neighborhood and the last poor African American household moving out.”

District of Columbia Analysis of Impediments to Fair Housing Choice 2006–2011

It’s interesting that  the Hine School project was mentioned. Under DMPED it evolved into a Tapeworm project modeled on deals between DMPED at the lead community development Tapeworm in Ward 1 Donatelli Development. In order to make this deal structure work DMPED office of Real Estate Development hid the final Land Disposition Agreement (LDA) from the public and approved at deal which required the segregation of the “Affordable Class” from the “Market Class”. Premised on the fact that the “Market Class” will not pay adsorbent luxury prices to live integrated with the “Affordable Class”. The Tapeworm requires government subsidization of Luxury prices in public land disposition deals to feed and succeed as this deal illustrates.

DMPED land deals are design to feed the Tapeworm at the government/public’s expense premised on a dual market. This dual market does not just drive segregation of residents based primarily on class and by default race, but segregates the “Affordable Class” from economic opportunity. If DMGEO is going to do its job it must have the District’s driver of economic opportunity in its portfolio, DMPED’s office of Real Estate Development and land portfolio. And of course the ability restructure or cancel Tapeworm deals. I know, I know, like the good people of Birmingham, Ala. told Dr. King in 1963, be patient, this is way the system/market is, it will take time to change, good people will also say to me let education reform work over next 20 years to address economic opportunity. Or that the only way to grow the District’s economy is to feed the Tapeworm otherwise they will not develop in the District. The “Market Class” will pay for segregation, that’s the only we need to balance the city’s budget and increase our bond rating.

I get it, there is nothing we can do but bad math and feed the Tapeworm.  No not really, we need and can produce real solutions for true economic grow without dependency on the Tapeworm.  Just need some courage and leadership on the model of Dr. King and countless others who took  on Jim Crow instead of making excuses for it.