Gentrification. WTF?

We hear a lot these days from all kinds of folks who are upset about “gentrification” in our City.

Currently some people are associating the term gentrification with the development proposed by Neighborhood Development Company (NDC) in the Takoma Junction as reason to kill the project. It’s clear that those employing this tactic don’t understand the terminology or are misusing it. So the question arises, what do we mean by gentrification? And why doesn’t it fit the situation under review by the Takoma Park City Council?

British sociologist, Ruth Glass, first used the term in a 1964 study on the occasion of middle class people moving into London working class neighborhoods. These days gentrification is almost always used as a pejorative in the context of poor Black folks being priced out of their own neighborhood due to rising rents. 

The web’s Urban Dictionary cites a colorful quote to illustrate one idea about gentrification:

“When uppity white people move into a ghetto and take over the real estate, which f**ks over the current residents. Usually followed by the opening of a sh*t ton of Starbucks, Nordstroms and Whole Foods.” 

The fact is gentrification refers to one thing: the displacement of lower income people by higher income people. Gentrification or displacement is not perforce a negative thing. It may or may not involve the displacement of racial minorities. 

Gentrification is essentially about neighborhood change. When lower wealth people face rising rents, it’s indeed unfortunate. But it also happens in reverse. Take Langley Park as an example. Today it’s home to one of the largest immigrant neighborhoods in the Greater Baltimore-Washington area. Langley Park was developed, according to Wikipedia, post WWII and became a middle class, predominantly “European-American, Jewish residents.” 

When we moved into our Ward 6 home 32 years ago, there was a Safeway supermarket (closed in 2009), a McCrory’s variety store, a Lerners women’s clothing store (later known as New York & Co.) and an aquarium store where Starbucks is now. Across University Blvd Langley Park S.C. had the Langley movie theater, a major chain grocery store, and a Hot Shoppes (Marriott-owned) sit-down restaurant that was replaced by a Taco Bell. There was a popular Hanover Fabrics shop. 

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Langley Plaza on the other side of N.H. Ave. opened in 1955 with a 3-story Lansburgh’s Department Store that closed in 1973 (per Wikipedia) followed in turn by EJ Korvettes, K-Mart and Toys R Us. Other big spots were a People’s Drugstore and Giant Food (closed in 1998). 

Today most of the businesses (numbering probably 300 to 400) around the intersection of NH Ave and University Blvd serve the Latino population and other immigrant groups such as from Haiti, Africa and South Asia. These enterprises simply reflect the modern demographics of Langley Park. 

The point is, Langley Park changed. No one has complained. Thus to the chagrin of Takoma Park residents, what was once a popular place to shop disappeared over a period of 30 to 40 years. Was this de-gentrification?

But, of course, history tells us it will change again. Why? Because the area sits well inside the Beltway within the hot Washington DC real estate market and it is, by any measure, one of the largest underdeveloped commercial real estate districts so close to the DC core. When this happens — and it will take many years — I expect there may well be concerns about the displacement of the residents and the businesses that rely upon them. 

Another example, one unfamiliar to most readers, is the Remington-Hampden-Charles Village area near Johns Hopkins University in Baltimore.

Last week my wife Nancy and I were in Baltimore visiting old haunts. Two neighborhoods quite familiar to me are Remington and Hampden (pronounced “hamden”) lie south and west of the JHU campus. In the 70s and 80s, these were ironclad white, working class, rowhouse neighborhoods. (In Baltimore, the term of art is rowhouse, not townhouse.) Blacks were not especially welcomed there. The storefronts were drab, rundown and many were empty.

In 1970 my ex and I bought a house in a nearby mixed-race area that had just anointed itself “Charles Village,” paying $6,500 for a 3-story, 6-bedroom, porch-front rowhouse that had been vacant for several years. The roof leaked to the first floor. It had almost no electrical power; gas lamps lit the interior. No bank would provide a mortgage. We saw ourselves as pioneer rehab-ers. In modern parlance, we were gentrifiers. 

The neighborhood public schools my sons attended were about 90% minority (today about 80%). The local middle school was Robert Poole, virtually all white, in Remington. Parents in Charles Village were terrified of having to send their children to Robert Poole where they might  be beaten up and bullied. As an activist I knew all these things. I was president of the Greater Homewood Community Corporation that, with the help of JHU, organized and provided social services to these neighborhoods.

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Remington’s new signature sculpture

48 years later these areas have become gentrified in a positive way. Remington and Hampden are now mixed (about 75% Caucasian). Many houses have been renovated and remain extremely affordable running $150 to $350 thousand. In Charles Village, which is majority minority, they are a bit higher. The two K-8 public schools represent a multiplicity of nationalities. There’s been an explosion of new small businesses and eateries, some really notable. Check out “R House” in Remington and Cafe Hon in Hampden. Unlike the old days, these communities are cosmopolitan and interesting.

The key message here is these areas have kept their physical character and affordability, but underneath their social character and spirit have been transformed. What some people call gentrification, I call renaissance. 

Let’s get back to Takoma Junction. The proposed NDC development has nothing whatsoever to do with so-called gentrification or even for that matter, racial equity. I know what racial equity means. As part of the previous City Council I strongly endorsed the unanimous vote to view all City Council actions through the racial equity lens.

NDC’s project will not displace anybody. The site is a parking lot. Will the cost of housing in the City go up? Yes, certainly. But not because of this project. The cost of housing will go up the same if no improvements were to be made to the site. Housing costs are a function of where we live, and the powerful DC economy that is driving up prices everywhere in the greater Washington and Baltimore region. Compared to the recently built and planned developments near the Takoma Metro, this is a very small project. Skeptics feel the project will change the face of Takoma Park. It won’t. 

Will racial minorities be affected by this project? Yes, in a good way. The project will provide new, local jobs in Takoma Park, many of them basic service jobs. The project’s 2-year construction phase will create lots of much sought after construction jobs. NDC itself is a minority-owned local development company.

Will the local retailers and offices that occupy the new structure be too chi-chi for racial minorities to shop there? I don’t know; no one knows yet. I do know this: no one raised a hue & cry about racial equity when the higher-priced Republic Restaurant opened a few years ago. Strangely, however, some folks did scream & holler in opposition when the affordable Taco Bell opened last summer providing about 50 low wage jobs for area residents. How does that compute?

Finally, in my time on the City Council I heard a fair number of people say the Co-op was a main reason they moved here. So, it seems supremely ironic that many of those who rally around the dreaded issue of “gentrification” in reference to NDC’s proposed site plan are not only white and middle class, but also often vigorous supporters of the TPSS Food Co-op, whose products appeal to those having a distinct preference for organic (whatever that means) foods and the disposable income to afford to shop there. I realize that some shop there for other reasons such as proximity and the spirit of neighborliness. But, if the Co-op doesn’t represent a quintessential attraction to the so-called gentrified types, I don’t know what does. 

Let’s lay to rest non-sensical assertions about gentrification and racial equity. RENAISSANCE is what is happening to Takoma Junction.

For more information on the subject of gentrification, I recommend this 2015 article in Governing magazine: http://www.governing.com/topics/urban/gov-gentrification-definition-series.html

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The Takoma Junction Project: a Layman’s Guide

The proposed Takoma Junction development project continues to generate a lot of heat, but not enough light. While I no longer serve on the City Council, I continue to watch, talk to people involved and listen to their concerns and questions. 

Given my unique background in real estate development, banking and planning, I want to lay out here certain facts for, I hope, the benefit of everyone regardless of their particular views on the project. 

Let me be clear that I strongly support Neighborhood Development Company’s proposed plans as presented as recently as this month. This won’t surprise those who’ve heard my views over the past eight years. This implies, of course, that I am biased. To counter my biases, I am just going to stick to plain facts as much as possible in this particular blog post.

Confusion and Conflict

There’s a lot of confusion, uncertainty and misinformation regarding the plans for this project. It’s not surprising because different people assert different things about the plan itself and its future impact. Perhaps you get information from neighbors and others whom you know and respect. You hear statements from the developer (NDC), City staff and various consultants, and it may be hard to know what to think. 

City Council members have been deluged with residents’ varying opinions. Unfortunately, some are based on faulty or incomplete information, personal agendas, or wishful thinking.

Nevertheless, over the past six years — since publication of the Takoma Junction Task Force report in 2012 — the City Council has not stopped listening and steadily wading through all the comments and, along the way, finding many constructive ideas that have shaped the project plans.

The Process

While the proposed project design has always been a work in progress (and there still remains work to be done), there’s really never been uncertainty about the process. Let me explain.

With the issuance of the RFP in early 2014, the City Council publicly laid out a process that it intended to follow in order to give the best chance that the Task Force’s goals could be realized. The Council has proceeded one step at a time. For example, no one knew whether any developer would respond to the RFP. (Years before a prior solicitation had gotten no responses.) The City was pleasantly surprised to receive seven responses. So, the process continued to move forward with the Council deliberating publicly on its next steps. 

The Development Agreement

Let’s begin with the fact that the city owns most of the project’s site. NDC has made a side deal to acquire the adjacent 5,470 sq. ft. Auto Clinic site. whose owner decided to sell in part because he wanted to retire. The city-owned lot covers 53,493 square feet, but a chunk of that is an unbuildable treed slope. Taking required setbacks into account, I guess NDC has about 45,000 sq. ft. to work with. 

The City signed a Development Agreement (DA) with NDC in July 2016. This 2-party agreement is in fact a legally binding contract that stipulates terms and imposes conditions on the two parties that are intended to protect the peculiar interests of each. And, like any development agreement, it anticipates various eventualities that could reasonably occur in the future and how the parties will deal with them. The DA remains the operative document along with the contemporaneous ground lease between the City and NDC.

The City Council has been careful to maintain compliance with the DA’s terms.

The City chose to lease its land to NDC for a period of 99 years, instead of selling it. The City will collect rent from NDC over the duration and property taxes on the assessed value of the improvements, which NDC will own. NDC will be responsible for all costs of operations and maintenance as though it were the owner, including any environmental compliance costs. 

Motivations

NDC’s main motivation as a real estate development company is to make a profit. “Profit” in this case means that NDC expects to design, build, finance, maintain and manage the facility, and sublease the space to tenants at rents sufficient that NDC will earn enough revenue from leases to pay its development costs, financing and maintenance expenses, and be able to sustain a reliable cash flow that will accrue to NDC, its owners and investors. NDC is also naturally motivated to build a quality project to enhance its reputation. 

NDC will inject some equity (capital) into the project and will borrow the rest (likely in the millions) from a commercial lender. In order to get a loan, NDC will have to prove to the lender on paper that the cash flow will be more than sufficient to repay the loan, and that the property when completed and fully occupied, will have a value markedly more than the loan amount. (This is stuff I used to do as a banker.) 

There in nothing new here. It is well to realize that every building in Takoma Park was built through this process . . . unless the owner used his own money or built the house for his own personal use. B.F. Gilbert, the founder of Takoma Park, was a developer. So, casting pejoratives about NDC’s profit motives, as some have done, is not helpful.

The City has multiple motivations for entering into this DA. These include, among other things, putting the property back on the tax roll, attracting new businesses to the city, turning the Junction into a more viable shopping district, thereby strengthening all the existing businesses in the Junction, and demonstrating that the City is supportive of good real estate development.

Risks, Costs and Requirements

NDC is assuming all the financial risks in this project. In other words, in the event the project were to “fail” from a business investment point of view (assuming the City were to meet all of its obligations under the terms of the DA), then NDC and the bank that finances the project could suffer possible financial losses. So far the City has spent about $89,000 hard cash on the project, mostly for legal services and consultant fees. This may go up in the future, but not by much. There are rumors that the city has spent “millions” on this project. These are untrue. The City has of course incurred the cost of staff time.

The DA also states that NDC should consider the Takoma Park-Silver Spring Food Co-op as the effective primary tenant in the project in light of the Co-op’s desire to increase its floor space and to expand onto a portion of the city-owned lot. Although a private enterprise, the City nevertheless believed the Co-op was significantly important to its members and other shoppers that the Co-op’s expansion would strengthen the overall project. The Co-op is a tenant on private land adjacent to the city’s lot. The City cannot dictate to it, as with any other business in the city. 

Because the Co-op and NDC are private businesses, the DA stipulated that the two parties would need to negotiate an agreement to cooperate, called a Letter of Intent (LOI). It set a deadline for this to be done, with the expectation that a formal lease would follow. An LOI gives both parties mutual confidence that they can move forward together in the planning and development process. The DA also constrains NDC from doing certain things that might injure the Co-op, like leasing space to a store that competes with the Co-op.

The Co-op and NDC were unable to agree on an LOI by the deadline (Jan 2017), but have continued discussions to try to work things out.

Takoma Junction Task Force

One of the more eloquent speakers at a recent city council meeting said it was essential we all understand the deeper purpose of this endeavor because to him the case was not clear.

The answer goes back to the work and report, published in February 2012, of the Takoma Junction Task Force. The City Council formed the task force in 2010, and appointed 22 people to it, with the mission of determining what should be done with the city lot. Eleven members were from Ward 3 (closest to the Junction). None was from Ward 5. The task force took great pains to reach out to a large number of interested parties including public officials. Its report enumerated 58 recommendations plus some imbedded “additional” recommendations. The authors noted some of the recommendations were mutually exclusive. Of course, a consequence of diverging recommendations is that residents have over the years cited different aspects of the report to support their wishes for the project site.

The City Council did not formally adopt or endorse the report. (It customarily does not do so for task force reports.) The Council commended the task force and has relied heavily upon it to formulate its strategy regarding the lot. NDC’s proposed site plan does in fact meet the major goals identified by the Task Force.

Current Issues

Current issues among opponents, undecideds and supporters include, in this order:

  • — the impact of the added traffic from the project on the existing roads, 
  • — the Co-op’s survival as a successful business through the construction phase and beyond, 
  • — the workability of the so-called lay-by for truck deliveries, 
  • — the overall size (scale) of the project, 
  • — the adequacy of off-street parking, 
  • — assurance of safe & convenient pedestrian paths across Carroll Ave, and
  • — adequacy of publicly available outdoor space (green features) 

In addition, there’s concern for defending the historic integrity of the Junction as part of a federally designated historic district. There is also a vague aspect that I can only describe, for lack of a cogent label, as the appropriateness of future retail tenants’ character in terms of what suits the taste of the quintessential Takoma Park resident.

Each of these matters could merit its own page here. I note a few points. 

Traffic

Everyone agrees that from a traffic and pedestrian standpoint, the Junction is a failure. We are fortunate to have two new traffic engineering studies addressing this. Although hired separately by the City and NDC, the consultants agree about the failure, but also say it’s fixable. The studies concur (or at least don’t disagree) that NDC’s project will contribute a very minor amount of new traffic to the intersection even during rush hours. The Traffic Group has presented a possible reconfiguring of the Sycamore/Carroll/Ethan Allen intersections that (they say) could cure traffic congestion, create far safer pedestrian movements and rationalize mobility and access concerns — even with the new project. This idea will require a more study separate from the NDC plan.

The engineers agree that the proposed lay-by will work for deliveries and trash pick up. Co-op spokespersons, however, remain skeptical. Traffic engineers are indeed engineers. Based on my training and experience in the field, they apply tried and true standardized methodologies to ascertain findings and produce forecasts. The work of these two consultants can be relied upon.

Scale

As for the size and scale of the project (“too big,” some say), NDC has removed any vestige of an earlier proposed third floor. In NDC’s sketches, it tends to look big next to the Co-op’s building. Let’s agree that envisioning a 3-dimensional volume is hard to do for most of us. So I suggest, try walking along nearby parts of Carroll, Sycamore and Manor Circle and see for yourself the relative height of many of the houses. Take a gander at the 2-story structures that house Middle East Cuisine, Mark’s Kitchen and Trattoria da Lina, as well as the buildings on the opposite side of Carroll, all roughly the same height as NDC’s design. They sit right up against the sidewalk. What makes those sidewalks so inviting to walk?

Parking

With 72 spaces underground, not counting the Co-op’s parking along Sycamore, parking will be adequate for Co-op customers, as well as for the new and existing businesses. Co-op shoppers laden with groceries may be concerned with accessing the underground parking. Is one elevator enough? The current city lot has 56 spaces, most of which are not used. Most of the current Junction businesses, other than the Co-op, don’t generate a large demand for parking, meaning their customers come and go fairly quickly.

Open Space

The adequacy of proposed public space is impossible to judge. There are no measurable standards like there is with parking and traffic; and everyone seems to have their own opinion on adequacy. I observe two things: first, small urban open spaces only function well when lots of people are present. Second, the B Y Morrison Park beacons it’s sheltered open space 60 feet away, yet remains neglected and deserted. Isn’t that odd?

The Site Plan Process: What’s Next

The City Council will vote later this month on a resolution approving the NDC project. Approval would enable NDC to submit a Site Plan Application to the Montgomery County Planning Board. This review process is highly regulated by County law. The Planning Board has the authority to command changes in the site plan. County agencies will look carefully at every aspect of the project. The process is time consuming and there will be plenty of opportunities for additional community input and further changes to the project’s design.

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Preserving Community Along the Mexico Border

The City of Las Cruces, the second largest city in New Mexico, lies about 40 miles or so north of the Mexico border. It sits in the high Chihuahuan desert at an elevation of about 4,000 feet. The 9,000 foot Organ Mountains loom over the city. The cities of El Paso and Ciudad Juárez on the Mexico side appear to form one seamless metropolitan area. Together with nearby Las Cruces there are about 2.2 million people.

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Organ Mountains and irrigation canals

I had never been to this part of New Mexico before. We were visiting cousins who operate a small pecan farm in the Mesilla Valley that’s irrigated by the Rio Grande, when it isn’t dry. (This is desert, water is scarce and pecans are a big business.) They have 3 dogs and a bunch of large, friendly goats who enjoy eating the pecan husks.

Not surprisingly, the influence of Mexican culture and Mexican immigration is quite prevalent here. But Las Cruces is very American and prosperous from all appearances. Just over the mountains is the White Sands Missile Range and Spaceport America, the first commercial space port in the US.

My cousin, Anna, has worked for the Las Cruces Public Schools as a school nurse for many years and still fills in. Both she and her husband are retired air force officers.

In the course of our conversations around their kitchen table I was surprised to learn that Las Cruces has been a sanctuary city for many years and that the folks here were not actually aware of it. They weren’t aware of the terminology.

The “sanctuary city” thing, while not official, has emerged as a function of public schooling and aspects of Federal education regs that provide reimbursements to public school systems based on the population of eligible pupils. 

For a long time members of families who reside in Mexico have migrated back and forth across the border to go to school (and no doubt jobs too). Their kids attend school while living with friends and family members on the US side during the school year and going back home to Mexico during the summer. Enrollees typically provide proof of residency, birth certificate and immunization records. Apparently the Federal regulations do not distinguish whether a child is documented in determining eligibility for federal reimbursements. The enrollment of Mexican kids benefits the schools with increased federal dollars. In return, many youngsters from Mexico and other undocumented kids benefit from an American education and, as it happens, medical care available to students, as well as learning English and American culture.

The local school system doesn’t have a need to query students about their citizenship status. That’s actually no big deal. There’s nothing unusual about this. I’m no expert on this, but even in Maryland, schools do not ask about documentation. All that a public school needs is an address of record for the pupil. 

Today, with the national brouhaha over sanctuary cities being fomented and wholly mischaracterized by the Trump Administration and the U.S. Attorney General, the folks in this part of New Mexico realize they are providing sanctuary. 

Sure, I guess one could make the case that American taxpayers are being ripped off or the taxpayers of Las Cruces are being burdened in some way. That’s not how Anna sees it. She says it is a privilege to be able to help these immigrant youngsters who she’s gotten to know in a personal way. 

My cousin’s husband flew tankers in Desert Storm and now volunteers as a pilot for the local Civil Air Patrol. He loves to fly. He does this work to assist the U.S. Border Patrol to both help interdict illegal drug trafficking and to find and rescue border crossers who are lost and stranded in the desert. He takes pride in his work. 

On top of this, he also goes to Ciudad Juárez from time to time to meet with community leaders on the Mexico side to address immigration and social issues. Juárez has seen a drastic drop in crime over the past eight years.

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pecans ready for harvest

Whether my family members would label themselves as conservatives or progressives is really not important. Those terms seem rather meaningless here. The reality is that they live in one large community made up of Americans (however one defines the term) together with Mexicans living, working and getting educated together.

The difference between where we live in the greater Washington area is that we have state boundaries; here they also have an international boundary. Imagine building a wall along the DC/Maryland border. Imagine the chaos, inanity and stupidity of such a thing.

Yes, there is illegal immigration along the border, probably a lot of it. It needs to be minimized. The Border Patrol is trying to do its job. But, it’s abundantly clear there is no room or need for Trump’s wall to be built along this border. All it would do is destroy a community and cripple a viable economy. 

We were in the El Paso / Las Cruces area three days. It was a family visit, not a fact-finding mission. So I can’t pretend to offer more than these simple observations. It didn’t take long, however, for nuances of a cross-border community to become apparent.

I do know that a border wall will not help matters, and that a wall will never be built along this border because the two million people here won’t stand for it. 

I find myself wondering why Las Cruces feels like Takoma Park, despite the obvious differences. There’s the sanctuary aspect, the rich diversity of residents, a strong sense of community, a spirit of openness and welcoming, the heightened awareness of sustainability due to the scarcity of water, and a reverence for the land and its ecology. Maybe also because New Mexico is a “blue” state in a part of the US where there’s not a lot of blue.

Selma 53 Years Later

The term “The Black Belt” has two different meanings in Alabama. One is historical; the other socio/political. But both are important in understanding the possible outcomes of elections in the Deep South. And, as the Deep South goes, so goes control of Congress, as many have said.

Historically and originally, The Black Belt refers to the color and fertility of the soil in a crescent shape area that extends over parts of several southern states. It covers a huge section of the middle of Alabama, that is,18 of the state’s 67 counties. Familiar places like Tuskegee, Selma, Marion, Demopolis, Montgomery (the state capital) and Greenville are there. Except for one county, all these counties are over 40% African-American and most well above 50%. The dirt really is black here.

In the Antebellum era, the Black Belt’s soil produced the best cotton and so plantation owners brought in a huge concentration of slaves to exploit this agricultural advantage. The area boomed economically.

For perhaps obvious reasons The Black Belt obtained its second definition, referring to this concentration of African Americans in this part of Alabama. The 12 most African-American counties lie in this part of the state. The City of Selma’s population is 81% black and it is also cited as the poorest city in Alabama.

CNN and other other media argued that The Black Belt vote made the difference last year in Democrat Doug Jones defeating Republican Roy Moore for the US Senate.

When you see the abject poverty in places like Tuskegee and Selma, and across the countryside, it is impossible to imagine any African American in Alabama ever voting to support a national candidate like Trump and far right candidates, like Roy Moore and and other extremist Republicans for Congress.

I talked to an older gentleman, Mr. Hewitt, who was manning the Selma Visitors Center the day we visited. He moved from Michigan to Selma in the 1960’s and managed a business there. He said back then almost none of the Black people in Selma knew how to read or write. Now most do. This has obvious implications for political involvement and voting. The scale of inequality in living standards between races is stark here. Yet the folks in The Black Belt probably aren’t going anywhere, however. This has been their home for generations.

Donald Trump, by publicly demeaning and insulting African American people and their ancestral countries, has done this part of the Deep South a big favor. These voters helped Doug Jones win. They were able to do so despite Alabama laws requiring photo IDs to register and vote.

The dominance of White supremacy in Alabama is losing its strangling grip. Alabama is 28% Black. With strong liberal enclaves in Montgomery, Birmingham, Mobile and Huntsville, things are changing in Alabama.

The Edmund Pettus Bridge spans the Alabama River at the entrance to Selma. Heading west on Route 80 toward Selma the bridge rises steeply, blocking the view of the town on the other side of the river. At the crest you suddenly find yourself looking down into the length of the town’s long, main commercial street lined with antique buildings. It sort of feels like a view from a movie crane.

Edmund Pettus was a Confederate brigadier general and a Grand Dragon of the Alabama KKK. Considering its place in history, the bridge seems a place out of time. It’s notoriety is a powerful reminder of a violent conflict 53 years ago. Yet, at the same time, the current resurrection of White supremacy in our country suggests the name on that bridge and the poverty and inequality in this part of Alabama aren’t going to change anytime soon.

But the times they are a-changing, as the saying goes, and the people who live in The Black Belt are having something to say — perhaps for the first time — about how fast it’s going to change. Their votes truly mattered in the recent Senate race. Having now tasted from the cup of victory, I’m betting they will be ready to vote in big numbers in the upcoming mid-term elections this fall. There may be no going back.

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A Crushing Good-Bye to 110 Years of Healthcare

  By Frederick Schultz

You are probably not likely to meet a finer, more decent, friendly and dedicated group of leaders than the folks who represent the Seventh Day Adventist community in Takoma Park. This is especially the case with Washington Adventist Hospital, based on my many years working with them.

So how do we reconcile this picture with the reality that in January, these same folks plunged a dagger into our hopes and expectations of a future “health village” delivering a range of reliable health services to our residents?

Services that were to be especially targeted to lower income residents in this corner of the Washington region. An area replete with many thousands of immigrants, people with limited mobility and modest incomes. Medical care sustained for 110 years since the hospital’s founding, severing once and for all what seemed like an immutable bond; and discarding years of thoughtful mutual consultations between the City Council and the hospital’s top people. I remind myself that this is where my big sister was born in 1933, and where I have been an inpatient more than once.

You can read here the City’s official press release on this matter: https://takomaparkmd.gov/news/hospital-considers-leaving-fewer-health-facilities-in-takoma-park/

Last month I met with Robert Jepson, Vice President for Business Development for Washington Adventist  Hospital (WAH). He said they expected to file in a week or two with the State of Maryland’s Health Care Commission their formal request to move certain facilities out of Takoma Park. Their removal would effectively vacate the hospital campus. Meanwhile, the hospital, pending State approval, has already begun negotiating the sale of their entire 13-acre campus to Washington Adventist University.

So, how did this happen? Why so suddenly? Perhaps the most important question is what does this mean for the future?

First, to be clear, I do not believe that the hospital leadership negotiated with us (the City) in bad faith. I realize there is lots of room for disagreement on this point, not to mention anger, disgust and disbelief. For one thing, the Mayor, City Council, city staff and attorneys have spent a lot of time and expense fighting for the best deal possible to preserve the Adventist’s health services in our city.

Is the WAH decision a total loss cause? I can’t answer that question. Politics can play a role in these sorts of situations. But, I am assuming for now the hospital’s decision is irreversible.

Second, let’s understand the hospital is fundamentally a business. Notwithstanding its mission statements and piety to the contrary, it has to be profitable in the long run to sustain itself.

Third, hospitals in Maryland operate in a competitive environment fighting to fill beds, to be efficient, and to comply with Maryland regulations governing hospitals, which are unique in the United States, and which obligate all hospitals in Maryland to operate under fixed global budgets. Layer on top of that the political chaos in Congress enflamed by the Trump Administration that generates confusion and uncertainty for insurers, for Medicaid and Medicare programs and for ObamaCare enrollees.  Plus, add another layer of rapidly changing medical technology and science; the role of third party physician practices and imaging services all of whom are trying to make a buck off their affiliations with hospitals, and “big pharma” affecting costs. It gets complicated.

With this as context, here’s my interpretation of what happened. Think of dominos falling.

We know that in December 2015 the MHCC (Maryland Health Care Commission) approved WAH’s Certificate of Need (CON) application with provisos that WAH had to staff and operate a 24-hour walk-in urgent care center and must keep its inpatient behavioral services in place for a minimum of four years.

WAH’s president Erik Wangsness publicly committed to a list of eight medical services that would either remain in situ or be added to the medical campus including its inpatient behavior (psychiatric) services and its physical rehabilitation units. The City argued strenuously to the MHCC to mandate WAH to sustain all of these other medical services in Takoma Park. The MHCC didn’t agree with our position. The loss of that argument in 2015 seems to have been our Achilles Heel in this saga.

The City leadership trusted the hospital’s commitment to maintain a medical campus here. Mr. Wangness’s predecessor as president, Joyce Newmyer,was also wholly committed to this goal through their first CON application, which was denied, and the second CON that was approved. The second CON greatly strengthened WAH’s long-term commitment to and stake in its Takoma Park campus.

According to Mr. Jepson, WAH’s plans for Takoma Park changed in late 2017 when WAH figured out that it could reduce costs and increase revenues by merging its Takoma Park behavioral unit with a similar unit at Shady Grove Hospital. That unit had been losing money. In turn, the relocation of the behavioral health unit led to the realization that maintaining its rehab unit by itself in Takoma Park would no longer be cost effective with regard to security and property maintenance costs. These beds will  therefore likely be moved to the new hospital in White Oak. As the dominos fell, it apparently followed that maintaining the other medical services, including a possible free-standing emergency room made no financial sense at all.

Why it took the hospital more than two years since CON II was approved to figure out these cost saving maneuvers is anybody’s guess.

So what of the future of the campus?

Assuming the MHCC approves WAH’s changed plans, should we say to WAH, in effect, “Good bye and don’t let the door hit you on the way out.” Yes, I am dismayed by the hospital’s breach of faith. But maybe we should look at it another way.  We can instead consider this misfortune as an extraordinarily unexpected opportunity to address other serious needs our city has. Like a new MCPS elementary school for our mushrooming school age population (if the School Board is willing); or perhaps a site for a high quality, year-round aquatic center? What about the need for more affordable housing and some small retail amenities? Also, shouldn’t there be something in this for the enhancement of Washington Adventist University? Or perhaps a combination of the above.

13 acres means not only room to preserve and protect woods, green space and the Sligo Creek watershed, but also nine acres for demolition of old buildings and for developing uses the City desperately needs. Imagine, 10 years down the road, maybe we will be adjusted to receiving care at Holy Cross Hospital; having our kids walk to a new public school, the City benefitting from an increased tax base and others of us enjoying new housing and amenities we never imagined. Maybe we can turn misfortune into our lucky day.

Bruce Baker, president of CHEER, probably has more grass-roots familiarity than anyone with the health care needs of our community. I asked him his views.  “We as a community need to think about the best uses, something that will help make us all healthier.” He meant healthier in the broadest sense of the word. He added he “hopes for some sort of process” to be set up to figure this out.

WAH will move into its new building on Plum Orchard Drive in the summer of 2019, says Mr. Jepson. That’s not long. We are already well into planning the move, he added.

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