Monday, August 13, 2007

Growth in Chinatown Exposes a Deep Rift

By Nikita Stewart Washington Post Staff Writer Monday, August 13, 2007; B01

There is a dividing line in Chinatown — a narrow, inconspicuous alley that twists its way between Massachusetts Avenue NW and I Street.

The District’s recent decision to close it to make way for an office building complex estimated to cost $206 million has exposed a festering animosity between two influential Asian civic groups and launched a battle over the future of Chinatown.

In a community that rarely airs its disagreements publicly, the clash escalated until D.C. Council Chairman Vincent C. Gray (D) intervened.

“This alley closing and what came with it was a symptom of a deep-rooted and long-standing conflict,” said Gray, who has presided over four mediation sessions with the two groups.

On one side is the 25-year-old Chinatown Steering Committee, led by Chinatown’s unofficial mayor, 82-year-old Duane Wang, and powerful restaurateur Tony Cheng. On the other is the month-old Chinatown Revitalization Council, led by 54-year-old computer consultant Alexander Y. Chi.

Both sides want Chinatown to blossom. But the upstart revitalization council says that under the steering committee’s watch, Chinatown has dwindled to “Chinablock” — H Street between Sixth and Seventh streets. And there’s not much Chinese about that anymore, the critics say, other than the ornate phoenix and dragon archway on H Street and Cheng’s Mongolian barbecue restaurant.

Chi said the lack of vision has stifled the growth of the area as a destination point with uniquely Chinese attractions like other Chinatowns across the country. New office buildings, trendy restaurants and chain stores have overshadowed the family-owned Chinese shops, he said.

One of the block’s most famous restaurants, Golden Palace, was torn down to make way for Gallery Place. The block’s newest eatery is Vapiano. It will serve pizza.

Cheng, 58, said his critics are just upset that government officials have long viewed him and Wang as Chinatown’s leaders. “A lot of people are jealous because of all we have, because of all we do,” he said, sitting in his restaurant’s dining room, across from a circular tank filled with crabs.

And Chi is breaking one of the most important tenets of Chinese culture, Cheng said. “He doesn’t respect older people. Duane Wang is 82 years old,” he said. “You may have smarts, but you are not smarter than him.”

Wang said his group has made Chinatown safer and made it look more Chinese by pushing through lampposts, sidewalk bricks emblazoned with the Chinese zodiac and a requirement for Chinese lettering on the signs of all stores. Wang and Cheng say they need more support from the city to force developers to go beyond those small architectural touches.

Gray worries that without a major push to unite the civic groups, efforts to preserve Chinatown’s heritage could stall for years.

But his role as mediator has been difficult. During meetings, the groups have planted themselves on opposite sides of his office. Some people had not spoken to each other in two years. And when they do speak, their words are harsh.

Chi said it’s time for the steering committee to step aside or to at least allow others to be included in negotiations with developers and the city about what should be in Chinatown.

“They have so much passion, but it becomes the baggage,” he said. “They can’t see the forest for the trees.”

Alfred Liu, the architect who designed the archway in the 1980s, even balked at Wang’s unofficial title as the community’s mayor. “The mayor of Chinatown. . . . Did we have an election?” said Liu, who has ditched his seat on the steering committee for one with the revitalization council.

The city Office of Planning gives weight to the steering committee’s recommendations when considering developments. Wang, with Cheng at his side, represented the neighborhood in one of the biggest developments in recent history in Chinatown: a 360,000-square-foot office building with a 300-space underground parking garage along Massachusetts Avenue proposed last year by developer Kingdon Gould III.

The steering committee and the revitalization council, along with downtown business groups, liked the idea because the block had deteriorated — it’s dotted with abandoned houses — and Gould promised to incorporate Chinese motifs in the design. The hope was that the development could revitalize that area, a block from the bustle of H Street.

That’s where the alley fight came in.

As other developers have done, Gould said he offered the steering committee a “benefits package” as a good-neighbor gesture. He offered $1 million for affordable housing in Chinatown, 13,000 square feet of space for community activities, $100,000 in grants for programs and 10 free parking spots for committee members, according to documents submitted to the D.C. Council.

Gould’s pledges hinged on closing part of the alley to make a service entrance, according to documents submitted to the D.C. Council.

But the alley happens to be right behind the homes of several steering committee members. They objected, and Wang and Cheng backed them, citing inconvenience and a potential increase in crime.

At a June council hearing, Gould testified that Wang and Cheng would not compromise.

Gray stepped in to mediate the impasse behind closed doors.

Gould apparently then decided to go around the steering committee. He redesigned the plans and cut the community space to 4,100 square feet. Instead of allowing the steering committee to operate the space, as they wanted, he specified that several community groups share it when the building is completed in about 3 1/2 years.

Gould also pledged $600,000 to the Chinese Community Church for roof repairs, a discount to Asian retailers who might want to lease retail space in the new building and $850,000 to a nonprofit group in Adams Morgan for affordable housing — a couple of miles from Chinatown.

Last month, the D.C. Council approved the terms, 12 to 1. The dissenter was council member Marion Barry (D-Ward 8), a longtime friend of Cheng. “I think Tony Cheng and the old-timers have been discarded,” he said.

In the end, the deal satisfied neither side. The revitalization council, which supported Gould’s plan, says that the affordable housing money never should have left Chinatown’s borders and that the $600,000 given to the church should have been spread among more groups.

“As a community, we missed an opportunity,” Chi said.

And no one seems to share Gould’s vision of shared community space, either.

Chi and others are fighting to get it, saying Cheng and Wang monopolize the Chinatown Community Cultural Center, a 3,000-square-foot space developer Herb Miller gave the community when he built Gallery Place.

Cheng is the center’s president; Wang is vice president. Cheng’s daughter is executive director; Wang’s daughter teaches English classes there.

Wang denies monopolizing the center and argues that it has been put to good use, emphasizing the table tennis and martial arts classes.

Dwan Tai, a former member of the steering committee, wants Gray to help other groups get use of the Gould community center.

Gray said his biggest achievement so far has been to get the two groups in the same room. He’d like to create an inclusive and neutral Chinatown Advisory Planning Council to divvy up use of the new community center and create a vision for Chinatown.

Wang said he knows the two groups must unite for Chinatown to survive and flourish.

“There’s an old Chinese saying, ‘When two fish fight, who wins?’ ” he said.

He paused, then put up his fists and hit them together to show their battle. “The fisherman.”

Posted by M at 14:07:35 | Permalink | No Comments »

Affluent Growth Via a Gourmet Market

Developers Court Upscale Grocers to Draw High-Income Customers in Virginia

By Kendra Marr Washington Post Staff Writer
Monday, August 13, 2007; D01

Residents around the western edge of Woodbridge yearned for classy places to dine, shop and play. They waited and waited.

And last month their wish was finally granted. On opening night, more than a thousand residents streamed through the doors of the community’s newest elite establishment — a grocery store.

“It’s nice to finally have something upscale to go with the house values,” said Ernesto Flores, 36, who just moved from Arlington.

This is the power of a gourmet grocer in the Washington area. The new Harris Teeter near Woodbridge isn’t a five-star eatery, but it has the ability to lure the popular retailers and affluent customers that developers covet.

 

Developers court these grocers with plenty of facts and figures. The grocers they seek are attracted to communities with “stronger demographics,” said Christopher Weilminster, senior vice president of leasing for Federal Realty.

Translation: high disposable incomes, high education levels, high traffic and high density.

Northern Virginia typically fits the bill. Thirty years ago, the suburbs were mostly bedroom communities for military and federal employees, said Bob Kettler, a developer.

Now, as the area has diversified with such companies as Oracle and Sprint Nextel, there’s been a remarkable shift in the education and financial capabilities of the entire marketplace, he said.

“These are people with high disposable incomes,” Kettler said. “They have knowledge about the products and the ability to buy them.”

Of the 40 grocery stores under construction, both gourmet and otherwise, in the Washington area, 65 percent are in Northern Virginia, according to Delta Associates, an Alexandria retail research firm.

Arlington County illustrates the appeal. In 2006, households there spent significantly more than average U.S. households on groceries and eating out, and spent slightly more in each category than regional counterparts, according to a newly published study by Arlington Economic Development.

Harris Teeter, since arriving in the Washington area from North Carolina about a decade ago, has opened the vast majority of its stores in Northern Virginia. Another chain, Wegmans, will open four superstores in Northern Virginia and four in Maryland.

“Not one area in America can replicate Northern Virginia in the level of affluence and the broad base of that affluence,” said Jeffrey Metzger, publisher of Food World, a trade publication.

The right demographics helped Prince William County land the Harris Teeter near Woodbridge, said Don E. Stedham, vice president of investment for Regency Centers.

They had the same effect in Gainesville, where a Harris Teeter will anchor a mixed-use development, Madison Crescent, expected to open in September. The median household income is $84,930 in a five-mile radius around Madison Crescent. It will be a gateway to Prince William County, which has a median household income of $89,634, according to a 2005 census survey. Townhouses start at $299,990.

“We were able to provide them high visibility in a growing area with good opportunities for jobs, good home values and demographics of a particular income level,” said John D. Rhoad Jr. of RMJ Development Group, who is building the development.

The specialty grocery store craze took off in the Washington area in the early 1980s, when Federal Realty revamped the Wildwood Shopping Center in Bethesda, replacing the old Grand Union with a Sutton Place Gourmet, which is now part of the Balducci’s family, Weilminster said. The new store was “wildly successful,” as affluent customers and retailers flocked to the area, he said.

“That’s when we understood how powerful the right grocery operator can be,” Weilminster said.

Over the years, some communities have complained that they have waited a long time for a gourmet grocer of their own. No matter how much they begged (Wegmans received 4,800 requests for stores last year) or pleaded (Balducci’s gets frequent phone calls from developers and homeowners), a specialty store remained just a wish.

“It’s only a matter of time,” said Gregory H. Leisch, chief executive of Delta Associates. “Virtually every Zip code with above average incomes in the metropolitan area is going to be well served with upscale grocers.”

While demographics are important, other factors can influence where a grocery store is built. Not all communities have the land to handle a 140,000-square-foot Wegmans with 700 employees. Wegmans stores tend to be regional, and on weekends, shoppers from as far as Richmond and Charlottesville crowd the Fairfax store.

“You have to go when everyone else is at church or late, late at night,” said Marlene Marx, 59, of Oakton.

Whole Foods, Balducci’s and Trader Joe’s typically run one-size-fits-all operations with specific real estate, parking and layout requirements. Harris Teeter has been the most flexible, developers said. In North Bethesda a two-level store is under construction.

“An 18-story apartment building will sit above grocery store,” said Michael J. Smith of LCOR, which is developing the North Bethesda project. “Harris Teeter was comfortable with a dense, urban mixed-use project with existing real estate close by. They’re one of the few operators that’s comfortable working within that kind of an envelope.”

The grocer is able to squeeze into smaller urban locations. Federal Realty is building a 29,000-square-foot Harris Teeter in Shirlington, a store about half the size of an average food retailer.

“Traditional grocers like Giant and Safeway were not candidates,” Weilminster said. “They couldn’t figure out a way to vary their product mix in such a small space.”

Though the gourmet stores have their appeal, traditional groceries still dominate the greater Washington area. Giant led the list of top 10 supermarket chains in the area in total sales, with 133 stores totaling $3.41 billion in sales, or 37.12 percent of the market, according to a survey this year by Food World.

Safeway, Shoppers Food Warehouse and Food Lion followed. Whole Foods came in fifth with 4.06 percent of the market. Harris Teeter ranked sixth with 2.57 percent and Wegmans was seventh, with 1.71 percent. Trader Joe’s didn’t rank in the top 10.

The competition for that market share is only getting tougher, analysts said. People are eating out more. Big-box retailers, such as Wal-Mart and Target, are entering the food market. Ethnic markets are growing.

“Everybody sharpening their focus — this is what we provide and what the other guy doesn’t have,” said Metzger, noting that the Washington region has become one of the most competitive markets for grocery stores.

A Washington area grocery store serves an average of 9,700 people, compared with the national average of 8,500 people, according to Delta Associates.

As soon as a gourmet grocery store announces it will anchor a new shopping center, adjacent storefronts immediately start leasing, developers said.

Wegmans’s upcoming arrival in Leesburg sparked interest from Barnes and Noble, Borders, and Linens ‘n Things, said Kettler, the developer. “Wegmans can drive enough traffic to support a larger retail community with so many more uses,” he said. “It draws a certain type of customers, which retailers like. The combination of the two is incredibly powerful.”

Harris Teeter has become one of Madison Crescent’s main selling points. Fliers tell retailers to “Join Harris Teeter,” the development’s Web site notifies prospective tenants that the grocer is within walking distance, and maps feature the store as a prominent structure.

Starbucks, China Wok, Escape Salon & Day Spa and Subway occupy the new Harris Teeter-anchored plaza at Prince William Parkway and Hoadly Road near Woodbridge. “It made my job a lot easier when Harris Teeter came on board,” Stedham said.

Residents hope that the development will have ripples.

“We need a good sit-down restaurant,” said Thomas Burrell, vice president of the Lake Ridge-Occoquan-Coles Civic Association. “I think we have enough Burger Kings, McDonald’s and KFCs.”

Posted by M at 14:05:30 | Permalink | No Comments »

Stalking a killer in our greens

Earthbound Farm grew the tainted spinach that left three dead last year. The firm is on a safety crusade but knows that threats always lurk.

By Marla Cone, Los Angeles Times Staff Writer August 13, 2007
 

San Juan Bautista, Calif.

On a hot, bone-dry afternoon — not unlike the one last summer when something went horribly wrong here — Will Daniels stands on the edge of a field, its neat rows of seeded soil stretching toward the horizon. Any day now, the first glossy leaves of a new crop will sprout, and within weeks, tons of fresh salad greens will be harvested, processed and sent to market.

Daniels wishes he could rewind the clock to Aug. 15, 2006. Stop workers from picking that lethal crop. Shut down his processing lines. Drive the trucks straight to a landfill and dump the entire load. Do something, anything, to avoid sending to market bags of baby spinach that killed three people, including a 2-year-old boy, and sickened at least 200 others, many with kidney failure.

Before that outbreak, whenever Daniels visited the fertile fields of the Salinas Valley or watched his production lines, he saw a wholesome, nutritious product he was proud to provide.


“We thought we were the best, but clearly that wasn’t enough,” said Daniels, who oversees food safety at Earthbound Farm.

Earthbound, the nation’s largest producer of gourmet salad greens, founded and owns Natural Selection Foods, which processed the bagged spinach that caused one of the worst food-poisoning outbreaks in recent years.

Days after the tragedy unfolded in mid-September, the company hired food safety microbiologist Mansour Samadpour. Right off the bat, Samadpour told Daniels and Earthbound Farm President Charles Sweat that they were delusional if they thought it wouldn’t happen again.

“Another bullet is coming your way,” he warned. “The question you have to answer is, will the processing eliminate the hazard? The answer for this industry is no. You can reduce; you cannot eliminate.”

Under the scientist’s guidance, Earthbound rapidly put in place the most aggressive testing and safety program in the industry. All its greens are now checked for pathogens, from seed to sale. Each lot is tested twice — upon arrival from a farm, and again when packaged products roll off processing lines.

The testing has confirmed what Samadpour already suspected: Inevitably, some crops are still contaminated with disease-causing bacteria. The challenge for the company is to make sure none reaches consumers. Hunting down pathogens in produce has become a personal crusade at Earthbound Farm. In the year since the E. coli outbreak, the company has subjected about 120 million pounds of salad greens to new testing methods at a cost of several million dollars. Other companies have mounted costly safety efforts, but no one else tests all greens.

“We’re not going to rest until we explore every possible safety improvement,” said Daniels, vice president of food quality and safety.

For consumers, there’s more at stake than one company’s obsession to make amends for a tragedy. It’s a question of whether pre-cut, bagged salads, consumed in increasing volumes, can ever be rendered safe — as pathogen-free as, say, a glass of pasteurized milk.

The phone call that changed Daniels’ life came last Sept. 14.

Daniels was meeting with organic growers when the Food and Drug Administration and state health officials called to break the news: People around the country were getting sick from E. coli, and many had eaten Dole baby spinach processed by Natural Selection Foods.

As the investigation unfolded, 13 bags with E. coli O157:H7were discovered, all processed at the company’s south plant in San Juan Bautista on a single day, Aug. 15. The trace-back shocked many, since Earthbound is an industry pioneer — not only the nation’s largest organic produce supplier, but the first to launch pre-washed salads back in 1986.

“I was devastated,” Daniels remembered. “It was an immediate feeling of, ‘How could I have let the company down? Where did we go wrong? What did we miss?’ “

With more than two decades in the business, Earthbound had a sanitary system that followed industry conventions. Greens were kept in cold storage and double-washed in chlorinated rinses before packaging.

Daniels immediately reviewed his records for Aug. 15. The system seemed to be functioning. The temperature and chlorination were on target.

Daniels was relieved. But then he realized that if nothing was broken, then their whole system had failed.

That’s when Earthbound Farm hired Samadpour, a former assistant professor of environmental health at the University of Washington who had helped the beef industry develop an E. coli detection program after a lethal 1993 outbreak at Jack in the Box restaurants.

Samadpour told Earthbound that the spinach outbreak wasn’t a fluke. Pathogens are everywhere, he said. After all, food isn’t born in a laboratory; it’s grown outdoors, where cows, wildlife and water all carry bacteria from feces. About 20 outbreaks already had been linked to leafy greens since 1995.

Federal and state investigators found that last year’s tainted spinach bags contained bacteria that genetically matched cow manure at a pasture near a field in San Benito County.

Samadpour advised Sweat and Daniels to immediately begin checking all greens for pathogens, which no one in the industry was doing.

Almost overnight, the company erected a laboratory with state-of-the-art equipment.

On Oct. 2, just 18 days after the spinach outbreak was discovered, the company launched its “test and hold” system in San Juan Bautista. Upon their arrival from farms, each truckload of greens was tested for pathogens.

Two days later, Daniels got a phone call from the lab. A contaminated batch of frisee had turned up from a field in the Salinas area.The whole load of gourmet greens, almost a ton, was packed onto a truck and hauled to a garbage dump.

It wouldn’t be the last.

Straight from a farm, a refrigerated truck pulls into Earthbound’s dock in San Juan Bautista early on a summer morning. The pallets of organic arugula are unloaded in a cavernous warehouse kept at a near-freezing 34 degrees.

A worker named Sonia, wearing sanitized gloves, a hard hat and a face mask, rolls a cart to the towering stacks of pallets. With forceps, she randomly pulls out three to five arugula leaves at a time. For each 1,600-pound lot of greens, Sonia plucks 60 of these “grab” samples, about 3 ounces total, then drops the leaves into a plastic bag labeled with a bar code identifying the farm and the date harvested.

Since the outbreak, Sonia and other Earthbound employees have extracted several million samples from the 40 truckloads that arrive daily, carrying enough salad greens to fill more than half a million bags every day. Each sealed bag is delivered to a trailer, where microbiologists are waiting to look for two strains of E. coli — including O157:H7, the virulent one that caused last year’s illnesses — and salmonella.

A lab worker adds nutrients and heats the leaves to 109 degrees for eight hours. Then he inserts a pink stick — a lateral flow device that resembles a drugstore pregnancy test — while another technician extracts DNA.

If those dual tests are positive, the lot is held four hours for two more sophisticated genetic tests that confirm the results.

Once cleared, greens are moved onto conveyor belts, where they are trimmed and triple-washed in chlorinated rinses. (After the outbreak, Earthbound added a third wash.) Then they are zapped with lasers to detect foreign objects. At the end of the line, packaged greens are held 12 hours and tested again.

Once a week, on average, a load of raw greens from a farm fails the tests.

Since the test-and-hold program began last October, 58 out of about 76,000 lots entering Earthbound’s plants in San Juan Bautista and Yuma, Ariz., have tested positive for pathogens, a rate of 0.0008%. That amounts to about 93,000 pounds of greens destroyed out of about 122 million pounds that growers sent to Earthbound in the last 10 1/2 months. They came from many farms — most in the Salinas area, but also in Arizona and the Coachella Valley. Investigators were dispatched to the fields the next day, but the sources remain a mystery.

Tests for finished products were added in February, and so far no packaged greens have failed. But odds are, pathogens will soon be found after processing. Chlorinated washes can reduce bacteria counts but not kill them all.

Samadpour predicts that four of Earthbound’s finished lots, nearly 4 tons, will test positive every year, most often in summer. If — or when, Samadpour says — that happens, Earthbound will dump it all in the trash, shut down the line and re-sanitize the plant.

Like most processors, Earthbound has also implemented pathogen-prevention measures in fields and plants, including inspections of harvest equipment, workers, compost and water.

Now the ultimate goal is to invent something that has eluded the industry: a full-proof method of sanitizing produce.

“Testing is not the cure,” Sweat said, “but it’s another hurdle for that product to clear before it goes to market. What we learned is we can’t always explain how something got contaminated. So we better put in more controls to detect it.”

In the lab he runs for Earthbound, Samadpour jots down the fatal formula for an E. coli outbreak. Every 15 minutes, one cell turns into two, then two into four — and before you know it, 24 hours later, millions of deadly microbes lurk on a spinach leaf.

“If 10 soldiers are well-armed against 20 attackers, you can hold them off. But if you have thousands attacking you, you’re in trouble,” he said. “Food safety is that way. One highly contaminated load will make history.”

For greens — and for ground beef, the leading cause of E. coli outbreaks — there is no “kill step,” or sanitizing system, that eliminates 99.99% of pathogens. Today’s best technology, triple washing, kills 99%. That means if a handful of leaves from a farm carries 10 million bacterial cells, 100,000 could remain — enough to make people sick.

Like an oddsmaker, Samadpour calculated the risk and came up with a mathematical formula designed to ensure that Earthbound sampled a big enough fraction of greens to prevent an outbreak, but not so big it would delay production and sacrifice freshness. The tests add 12 hours to the time it takes for the greens to reach consumers.

The company is now pushing for federal rules mandating testing. The rest of the industry’s “don’t test, don’t tell” approach is a potentially deadly and costly mistake, Samadpour said. A recall can cost the industry tens of millions of dollars.

“Companies that don’t test their products are putting themselves 100% at the mercy of their wash system, which everyone admits will not remove bacteria that is tightly attached or internalized,” he said.

But the industry is skeptical. Many question the accuracy of the testing because the technique has not been scientifically verified, and they worry about lab errors — false positives and negatives. They say it offers no quick fix and may give producers a false sense of security.

Fresh Express, the nation’s largest supplier of bagged greens, says “test and hold” is unnecessary at its plants because it has rigorous safety measures, including the largest buffers between cows and crops, and its food has never been involved in an outbreak.

“The ultimate goal is we don’t want anyone sick from our product,” said Kathy Means of the Produce Marketing Assn. “But there’s a variety of paths to get there. One size does not fit all.”

Trevor Suslow, a UC Davis microbial food safety specialist, has mixed feelings about whether extensive testing should occur at every plant. More important, he said, is to ensure that growers, processors, truckers and stores all have well-designed programs to minimize pathogens.

“I think we simply have to engage in pathogen testing at some level. But you can’t test yourself out of any or all contamination,” Suslow said. “Due to the low probability of catching something, it has limited real value. But it may be an essential step to prevent an egregious mistake.”

Earthbound’s tests aren’t foolproof. Because they are likely to miss some tainted leaves, people could occasionally still get sick. But they could stop big outbreaks, said Robert Mandrell, a U.S. Department of Agriculture research leader who specializes in genetic pathogen testing.

“Large outbreaks are the critical events to stop, so testing might help. Only time will tell,” Mandrell said. “As long as processors and buyers do not try to oversell a ‘not detected’ result, there is no downside, except the expended effort and resources.”

The new safety controls have cost Earthbound Farm “in the millions” over the last year, adding perhaps pennies per bag, Sweat said. The company, which produces $168 million in packaged salads annually — 6% of the market — has not raised prices to cover its costs, he said. Its greens are marketed mostly under the organic Earthbound Farm label, but also other names, including some Dole, Ready Pac and Trader Joe’s products.

Michael Doyle, the industry’s most vocal critic, said Earthbound “has made major strides in making products safer.”

“I believe that Earthbound is now the industry leader in providing food safety interventions to fresh-cut salads,” he said. “The rest of the industry would be well-advised to follow Earthbound’s lead.”

Nevertheless, Doyle, who is director of the University of Georgia’s Center for Food Safety, still won’t eat Earthbound’s food, or any pre-cut, bagged fruits and vegetables, because they are more prone to contamination than whole produce.

“The problem is they don’t have a bulletproof intervention,” Doyle said. “I still feel they have a ways to go. But I also think they are committed to have a product as safe as pasteurized milk.”

Sweat’s ultimate goal is to make bagged greens so safe that Doyle will accept his invitation to have a salad for lunch.

Earthbound employees are motivated — and still haunted — by victims of the food poisoning, particularly a 2-year-old Wisconsin boy who died after his mother made him a spinach smoothie.

“When I got word of that, it took me to my knees. Each one is devastating, but that was absolutely the most heart-wrenching thing I have ever gone through,” Sweat said. “For me to sit down at the table with a consumer who is going to eat one of our products, I need to be able to look them in the eye and tell them we are doing everything we can.”

Posted by M at 13:36:10 | Permalink | No Comments »

Rentals Reach a New Level of Luxury

Marilynn K. Yee/The New York Times; Hiroko Masuike for The New York Times (Chelsea Landmark)

One Carnegie Hill; 37 Wall Street; Chelsea Landmark; Ritz Plaza.

By VIVIAN S. TOY Published: August 12, 2007

A GOLF simulator that lets residents imagine they’re playing the 18th hole at St. Andrews in Scotland.

Well-Appointed Rentals

A penthouse party room with sweeping city views where residents can entertain, say, 50 of their closest friends.

Swimming pools, yoga studios and massage rooms that would satisfy even the most driven New Yorkers.

And finally, the one thing that should make any apartment dweller’s heart skip a beat: a washer and dryer, even in a 450-square-foot studio.

These are the kinds of amenities that developers are using to redefine the term “luxury rental” in Manhattan, and, perhaps more to the point, to justify a whole new level of prices for people who want the feel of a high-end condominium but don’t want to buy.

With rental vacancies hovering at less than 1 percent, developers are confident that the rental market is strong enough to absorb thousands of new apartments, even if they come with rents that are two to three times current averages. That means studios that rent for as much as $3,500 a month, one-bedrooms for $6,000, and two-bedrooms for $11,000. These are, incidentally, the kind of prices that owners of high-end condos might get if they rented out their apartments, brokers say.

In recent years, developers have been focused more on condo development than on rental construction, but at least nine rental buildings have opened within the last year, and at least a dozen more are scheduled to open in the next two years. Most of these buildings are high-rises, which means that thousands of new apartments will become available in the next 18 months.

“Builders are realizing that they can build rentals with high amenities and real wow factor because people are willing to pay for it,” said Gary Malin, the chief operating officer of Citi Habitats. In many ways, the market for new rental buildings is merely following the lead set by the condominium market in the last five years, when developers raced to find the most talked-about new amenity.

The developers of these new rental buildings are also giving them a Club Med vibe. Some even have created the land-based equivalent of a cruise director — someone to organize Halloween parties, a softball team and the occasional ski trip or scuba diving lesson. All with particular renters in mind, of course.

“These are people who know how they want to feel when they walk into their lobby and their home,” said Cliff Finn, the managing director of new development marketing at Citi Habitats. “It’s about feeling successful.”

The Chelsea Landmark, a 38-story tower with 407 apartments at 25 West 25th Street, opened five months ago. The developer, Rose Associates, built 22,000 square feet of amenities that include a gym, the golf simulator, a Zen garden, a spa with an oversize whirlpool and sauna, two lounges with billiards tables, wireless Internet connections and free juice and coffee, and a demonstration kitchen where local chefs will be featured at monthly events.

“Not every builder is willing to spend the money to get the high rents,” said Adam R. Rose, the president of Rose Associates. “But we knew that with this building we would be able to skim off the top 5 percent of renters in every building around here,” including people from older Rose rental buildings, he said. About half of the 20,000 apartments that Rose owns and manages across the city are rentals.

Mr. Rose said his company would not have built a building as well appointed as the Chelsea Landmark a few years earlier. “What’s acceptable to the marketplace has changed drastically,” he said. “What we delivered 20 years ago in condos wouldn’t make it today in even the lowest-level rental building.”

New rental apartments now include name-brand stainless-steel kitchen appliances, granite countertops, marble baths and hardwood floors. “The days of parquet are gone,” Mr. Rose said.

He added, however, that while the materials used in apartments at the Chelsea Landmark were expensive, they were chosen to stand up to a potential revolving door of renters. The kitchen counters are made of manufactured quartz composite and the bathroom tiles are porcelain. “They don’t just look good; they’re indestructible,” he said.

The quality of apartment fixtures and the kinds of amenities in a building naturally vary, depending on a building’s location and the kind of tenant that the developer hopes to attract. Brokers and developers agree that the target audience for many of the new high-rises is young professionals in their 20s and early 30s who may earn as much as $300,000 a year but who just aren’t ready to own yet.

The people moving into 37 Wall Street, for example, are “downtown-oriented people who are still early in their careers, and they choose to rent, but they have a condo sensibility,” said Mr. Finn of Citi Habitats. They are people who can afford a $4,800 two-bedroom but who might not have the $300,000 they would need for a down payment on a comparable condo that might cost $1.5 million, he said.

Thirty-seven Wall is a former bank building that has been converted to 373 rental apartments. Amenities include a gym, a yoga studio, a screening room, a lounge and billiards room with a lush clubby feel, and 150 channels of DirecTV in each apartment.

Chris Mazzarella, who works at a market research company in SoHo and who moved into 37 Wall in May, said the building’s amenities were “a major decision maker on my part.” He lives in a studio and plans to spend plenty of time in the lounge either shooting pool or on his laptop, and in the gym working out. He also hopes to give a Super Bowl party in the screening room.

Mr. Mazzarella, who is 27, said most of his neighbors seem to be young professionals. “I definitely feel like I’m in my element,” he said.

A building like One Carnegie Hill, at 215 East 96th Street, has a slightly broader mix of renters: singles in their 20s and couples in their early 30s, some with young children. The building, which opened a year ago, has an enormous fitness center and a rooftop party room, but it also has a charming children’s playroom that comes with free child care on weekend mornings when parents might be working out in the gym.

It has a roof terrace for sunbathing and a third-floor terrace with a playground and three separate barbecue areas, where residents can give outdoor dinner parties.

Mindy Jaffe said she and her fiancé, Per Chilstrom, have made good use of the barbecue areas. “We’ve had people over, and you just can’t believe you’re in the city,” she said. “It’s like being in your own private outdoor space.”

Ms. Jaffe said she and Mr. Chilstrom, who are both 32 and who rent a one-bedroom, have each lived in all kinds of buildings, including walk-ups and buildings without doormen. “We’ve thought about buying but haven’t been ready to do it,” she said.

The top 19 floors at One Carnegie Hill are actually condop units, while the bottom 23 floors are rentals, with separate elevator banks for each portion. The fitness center and lounges are free to apartment owners and available to renters for an annual fee of $600 for one person and $1,000 for two.

David Wine, the president of Related Residential Development, the company that developed the building, said the fees were set well below market rates for health clubs. “We’re not viewing it as a profit center,” he said. “We want people to join and use the amenity because it improves their lifestyle, and it’s what living in the building is all about.”

With so many new buildings coming online, the owners and managers of some older rental buildings are renovating their common spaces and looking for other ways to compete.

Stonehenge Management, which owns and manages the Ritz Plaza, a 479-unit building at 235 West 48th Street that was built in 1990, recently renovated the building’s fitness center and pool and also created a lounge area that residents can use for private parties. As apartments become available, they are also being upgraded.

“We have no problem spending the money to keep up with the newer construction and to maintain the rents we maintain,” said Marc Kaplan, the director of leasing at Stonehenge.

Shigeki Morii, a media consultant, has lived at the Ritz Plaza with his wife, Yuko Hamada, for nearly 10 years and said he was pleased with the upgrades. He uses the gym regularly and takes his laptop to the lounge whenever his wife needs quiet in the apartment to concentrate on her work as a Broadway reviewer for a Japanese television company.

“I also like the social aspect of the building,” he said. “Especially at the gym, when you see the same people and take the same classes, it’s a good way to get to know each other.”

Mr. Wine said his company was always looking for ways to keep its buildings current. At 1 Union Square South, which is nine years old, Related recently doubled the size of the roof terrace, adding outdoor barbecues and private party space. And at the Westport at 500 West 56th Street, a building that is about four years old, Related is creating a second party room at the top of the building because the existing one is almost always booked.

“We’re continuously redoing lobbies and common spaces because we have to constantly compete with new construction,” Mr. Wine said.

Looking ahead, with many more rental buildings on the horizon, developers seem quite likely to continue their efforts to outdo one another and even themselves.

Mr. Finn of Citi Habitats said he was working with different developers on half a dozen new buildings that will open in the next two to three years, including two 60-story towers with 1,254 units planned by Silverstein Properties on West 42nd Street.

Although the new buildings are still in planning stages, developers seem to be pushing the design envelope in search of a resort aesthetic, he said. That could mean outdoor rooftop pools and apartments with higher ceilings and ever finer finishes.

“You’re going to see a whole new breed of rental product coming on,” he said. “Things that will give condos a real run for their money.”

Posted by M at 06:51:30 | Permalink | No Comments »

Good signs downtown, but vision still lacking

Steve Lopez August 12, 2007
The ghost town is gone.

When I leave my office in the early evening, the downtown Los Angeles of years past is but a memory. People who live in transformed, long-abandoned buildings and trendy new towers are on foot, heading here and there and nowhere in particular.

The new and much-celebrated Ralphs, whose disciples are no less reverential than those who flock to Harrod’s in London, has international wine tastings where no one drinks out of a brown paper sack. And I think it’s generally a good sign that there are now more dogs than humans urinating on downtown sidewalks.

I like much of what I see. And with all this commerce and more to come, the potential benefits to the rest of the city (from shared tax revenue) and to the whole region (from new attractions around Staples Center and on Grand Avenue) are huge.

But there’s just as much potential for disaster. Pardon me for popping a few party balloons, but somebody has to.


In typical L.A. fashion, mega-developments and the redrawing of the skyline are underway with little in the way of long-term vision or planning. It’s the same old let’s-try-this-and-see-what-happens approach, with developers in the driver’s seat.

Although public officials and the media spun last week’s downtown zoning changes as a boon for desperately needed affordable housing, there is in fact no requirement that a single such unit be built — there are merely incentives that developers may or may not choose to take advantage of.

As usual, the impact on traffic was not a consideration in any of this. Nor is anyone admitting that downtown will scare most people away until there’s a commitment to build, and scatter across the region, enough supportive housing to clean up skid row once and for all.

And then there’s the greenery problem.

Why do dogs do their business on sidewalks? Because there’s nowhere else for them to go. Where are the pocket parks? Where are the benches for people to sit with a cup of coffee and a newspaper and watch the world go by?

Rather than do something about it, the geniuses at City Hall have just given developers the right to reduce the space between buildings and to squeeze up even closer to sidewalks.

“Everybody is talking about the need for more parks,” said Ian Barnard, a downtown resident and an English professor at Cal State Northridge.

Actually, there’s the Fashion Institute park, but that’s small. And there’s Pershing Square, but that is possibly the worst excuse for a city park in the entire Western Hemisphere. It’s a sun-blasted wasteland and public embarrassment, and if it were up to me, I’d have the bulldozers out there tomorrow.

Meanwhile, a planned park at 1st and Spring was ditched for a new police administration building, and the civic mall redesign is a few years away and a little too far from much of the new downtown residential development.

How many people are going to hear the downtown buzz, make the move and then clear out a year later when they discover there’s so little outdoor space in the heart of a city with the kind of weather that makes a person want to be outside?

Robert Harris, a downtown resident and a professor of architectural landscape at USC, argues that sidewalks constitute the greatest expanse of open space in downtown Los Angeles. Rather than squeeze them, he’d like to see them dressed up with benches and public art.

Beth Steckler of Livable Places would like to see little nooks and alcoves of downtown turned into miniature parks. To spur creativity, her public policy nonprofit is sponsoring a Sept. 21 campaign to convert areas as small as parking spaces into mini-parks (more information is at www.Parkingdayla.com).

It wouldn’t take much imagination to convert dozens of downtown alleys into al fresco hangouts, but according to downtown developer Tom Gilmore, there’s a reason only a few such places exist.

“The bureaucratic lead time to pedestrianize the alleys is a day shy of infinity,” Gilmore said, adding that the city could easily streamline the hurdles.

“The city can get caught up in big plans and forget how much can be accomplished with little things. Look at all the little tiny 5,000-square-foot parking lots. The city could be buying those up and building parks, because those are the ones that people love — the small neighborhood park that’s built on a smaller scale.”

Madeline Janis of the Los Angeles Alliance for a New Economy says the city should offer developers a menu of community-enhancement options. If the downtown real estate market is so hot that builders want to bust density or height limits, they should be required to convert alleys, or add green space, or improve transit access, or offer a percentage of affordable housing units so people can walk to all the new jobs that might be created in the new downtown.

Imagine if all of those amenities were in place along with a new civic mall park.

Bill Witte, the Related Cos. chief who’s in charge of that project, told me he plans to lobby the state for enough additional funding, on top of the budgeted $50 million in local funds, so there’s a chance to build one of the great public spaces of the world.

I’ll believe it when I see it, but let’s say it happens. Let’s say you can take the Red Line in from the Valley — or Metrolink from Claremont — and have an early dinner on a downtown sidewalk paved with Spanish tiles.

Then you take a shuttle — I’d have them running on five-minute intervals — to the new civic mall to watch a band from the Colburn School in the new outdoor amphitheater, or catch a movie under the stars, or watch opera in the park.

Maybe you go to a Lakers game or see a theatrical production in a rebuilt grand theater on Broadway, and then wander over to a re-imagined Pershing Square for a nightcap.

No, I’m not holding my breath.

But this is not farfetched, pie-in-the-sky stuff. With enough imagination, and a little leadership, it’s a city center that could exist.

Posted by M at 05:20:28 | Permalink | No Comments »