At the Jan. 12 meeting, the Columbia Heights City Council unanimously approved the sale of Bond Series 2026A for a planned redevelopment at 4300 Central Ave. NE.
The proposed development includes 20,000 to 60,000 square feet of retail space, 400 to 600 market-rate apartments above the retail on the east side of the site, a park, infrastructure upgrades, underground parking, low-density single-family housing on the west side and environmental features such as solar panels and rain gardens.
Community Development Director Mitch Forney said the item had already gone through the city’s Economic Development Authority, beginning with a previously approved amended loan agreement and followed by the setting of the bond sale in December. The bond sale will refinance or pay off bonds the city issued to loan the developer, Alatus, funds to purchase the site.
The city extended the loan agreement to 2028. Forney said the developer must either secure independent financing and repay the city by that date or default.
The original aggregate principal amount of the bonds is $7,490,000, according to the meeting packet.
The council also unanimously approved a development assistance agreement for the site.
Forney said the agreement was discussed extensively at a prior EDA meeting, where all five council members — who also sit on that body — raised questions.
The agreement stems from the city extending its loan agreement with Alatus and from the redevelopment itself, Forney said. State statute requires the city to enter into an agreement with the developer that establishes firm development standards with the entity undertaking the project.
While the city’s mortgage and loan agreement remain in effect through 2028, Forney said the development assistance agreement sets a more stringent timeline for Alatus to complete specific milestones, reducing the city’s financial risk.
The agreement covers only the first phase of the development, Forney said. Additional phases will be addressed through amendments brought to the council as timelines are finalized.
Under the agreement, the developer must begin improvements by September 2027. Forney said that work would likely start with environmental remediation, followed by public improvements related to stormwater and similar infrastructure.
An additional timeline requires the developer to demonstrate to the city and the EDA that the project is “substantially complete” by 2030.
“Unless there are market conditions that stop it, more than likely the development will continue and not have to use that,” Forney said. “They will have to still pay the loan back in 2028, but this just gives the city additional abilities to enforce and keep this project moving forward.”
Council Member Rachel James said the agreement provides the city with an opportunity to mitigate the risk associated with extending a loan while allowing the project to proceed.
“The next big chunk for us to do as a city, to get that big block on 43rd and Central developed — and we’re doing it in a really smart way, so that we have agreements that if it doesn’t go forward, we’re going to not be left holding the bag,” James said.
Mayor Amada Marquez Simula said similar financing tools are being used across the county as development costs continue to rise.
“Even if it’s slow as molasses, at least it’s moving forward,” Simula said.