Anacostia Waterfront Corporation

Anacostia Waterfront Corporation

Company type	Government-owned corporation
Industry	Urban redevelopment, environmental restoration
Founded	2004
Founder	District of Columbia government
Defunct	2007
Fate	Disbanded after three years
Headquarters	Washington, D.C. , United States
Area served	Anacostia River waterfront and surrounding areas, Washington, D.C.
Key people	Stephen Goldsmith (Chairman), Andrew Altman (CEO until October 2005), Adrian G. Washington (CEO from November 2005)
Products	Redevelopment projects including Nationals Park Baseball District, Southwest Waterfront, residential and commercial developments, parks
Parent	District of Columbia government

The Anacostia Waterfront Corporation (AWC) was a government-owned corporation established in 2004 by the District of Columbia government with the goal of revitalizing communities along the Anacostia River and coordinating efforts for the river’s environmental restoration. Designed as a two-decade endeavor, AWC was responsible for managing an $8 billion redevelopment strategy involving both public and private sectors focused on the Anacostia waterfront and surrounding city properties east of the river. Nevertheless, following a shift in mayoral administration and setbacks in project advancement, the corporation was disbanded after only three years.

Formation

In December 2003, then-D.C. Mayor Anthony A. Williams proposed the creation of AWC to spearhead redevelopment efforts targeting neighborhoods, infrastructure, parks, and other spaces adjacent to the Anacostia River. This initiative came after more than four years of cooperation among municipal and federal officials, developers, private organizations, and community members. The entity was modeled on New York City’s Battery Park City Authority, which had successfully overseen redevelopment in Battery Park and Battery Park City.

AWC secured funding through $250 million in revenue bonds and set out to execute a 20-year plan aimed at generating $8 billion in combined public and private investments, including $1.5 billion dedicated to cleaning up the river. The vision included constructing 5,000 new housing units, retail centers, office spaces, a riverwalk, new bridges and roadways, as well as a light rail system by 2011. The Council of the District of Columbia passed the enabling legislation on July 13, 2004, with Mayor Williams enacting it into law on August 5, 2004.

Stephen Goldsmith, former mayor of Indianapolis, chaired the AWC board while Andrew Altman—then serving as Director of D.C.’s Office of Planning—held the position of CEO.

Baseball District

The AWC played a leading role in promoting the development of Nationals Park, a new baseball stadium for the Washington Nationals Major League Baseball franchise. This project represented its largest redevelopment effort and was branded as the "Baseball District." Starting in August 2005, AWC began negotiating land purchases around the stadium site to create a mixed-use development spanning 40 acres that would include hotels, office buildings, parks, residential units, retail shops, and dining establishments—aiming to establish an entertainment hub comparable to the area surrounding the Verizon Center in Chinatown.

AWC encountered public disagreements with the D.C. Sports and Entertainment Commission concerning parking arrangements; while AWC favored subterranean parking facilities, Nationals’ ownership preferred above-ground garages. In June 2006, a compromise was reached to construct above-ground parking garages encircled by high-rise condominiums to reduce visual impact. When this arrangement fell through three months later, AWC sought to acquire the land for $1 million.

In December 2005, AWC appointed two master planning teams tasked with designing the Baseball District. Following a 25% increase in stadium construction costs pushing expenses to $667 million, AWC faced pressure to sell development rights on nearby parcels to help cover budget overruns. By June 2006, persistent conflicts prompted Mayor Williams to create an Office of Baseball specifically charged with overseeing development within the Ballpark District. Later that month saw the release of a draft master plan.

Southwest Waterfront

One of the primary undertakings was the redevelopment of the Southwest waterfront, encompassing a one-mile stretch bordered by 12th Street SW, M Street SW, Maine Avenue SW, and the Anacostia River. This represented the first significant revitalization initiative since the 1960s. The land was under the control of the National Capital Revitalization Corporation (NCRC), a quasi-public entity created by the District of Columbia government. In February 2006, NCRC agreed to transfer ownership of this waterfront area to the AWC in return for $25 million, $24.5 million worth of city-owned property, and development rights to three additional large parcels owned by the city.

The AWC invited proposals that included spaces for cultural institutions (such as museums, theaters, or performance venues), hotels, office buildings, parking facilities, residential units, and retail establishments. Seventeen firms submitted proposals initially; by June 2006, five were shortlisted to submit detailed plans, with two progressing to final submissions by August. In September 2006, PN Hoffman/Struever Bros. Eccles & Rouse was chosen as the lead developer for a $500 million redevelopment project.

Nonetheless, progress was hindered as the land exchange deal remained unfinalized two years after its initial agreement. To accelerate the process, the D.C. City Council introduced legislation in November 2006, and the AWC offered $20 million to buy out existing leaseholders to facilitate cooperation from NCRC. The land transfer was ultimately completed in mid-February 2007, allowing redevelopment efforts to move forward.

Other Projects

Additional development ventures undertaken by the AWC included:

• Anacostia Metro Station — In August 2005, the AWC proposed constructing its corporate headquarters at the Anacostia Metro station as a strategy to spur economic growth in the underserved Anacostia neighborhood. By November 2006, AWC had formally requested Metro’s Board to relocate its headquarters from downtown D.C. to a new $65 million facility built atop the station.

• Barry Farm and Lincoln Heights — The AWC held ownership of several parcels within these neighborhoods. In December 2006, D.C. committed to issuing $350 million in municipal bonds to finance construction of approximately 1,400 residential units on land controlled by the AWC in these areas.

• Hill East/Reservation 13 Waterfront — Serving as lead agency for redevelopment in Hill East and L’Enfant Plan Reservation 13, the AWC awarded 14 community grants aimed at enhancing waterfront access and use. In June 2006, plans were unveiled to extend Massachusetts Avenue SE into Hill East, develop 2,000 housing units alongside one million square feet of office space in Kenilworth, and build a pedestrian bridge connecting to Deanwood Metro station. Despite President Bush’s proposal for land transfer, federal authorities delayed title conveyance until relocation of a congressional mail-sorting facility was completed. Meanwhile, the AWC commissioned engineering designs for infrastructure improvements including medical offices, mixed-use residential projects, an office park, and a replacement facility for D.C. Jail. Six pedestrian bridge concepts were presented in March 2007.

• Kingman and Heritage Islands — Mayor Williams suggested transferring these islands in the Anacostia River to the AWC for development into parks and wildlife education centers.

• Poplar Point — This federally owned 110-acre site adjacent to major roadways and the Anacostia River was targeted by AWC for future acquisition. The organization solicited design concepts emphasizing parks, memorials, housing developments, and wetland conservation. Although master planning commenced in June 2006 following President Bush’s land transfer proposal, actual transfer was delayed over a year later. Redevelopment plans remained unsettled by late 2006 as AWC postponed progress pending replacement of the Frederick Douglass Memorial Bridge. In January 2007, a master plan was released featuring a soccer stadium with seating for 27,000 spectators, hotel and conference center facilities, 2,000 residential units, and parkland.

• Washington Canal Park — The AWC envisioned creating a park-like mixed-use development along 2nd Street SE incorporating residential buildings, office space, retail outlets, and public parks; construction was expected to begin early in 2007.

As of mid-2007, none of these redevelopment projects had broken ground.

Andrew Altman resigned as CEO of AWC on October 6, 2005; local developer Adrian G. Washington took over on November 11, 2005. Washington later formed an advisory council charged with overseeing redevelopment activities.

Bond issuances

The initial phase of AWC's development was financed through multiple bond issuances. In June 2006, Mayor Williams introduced a $230 million "payment in lieu of taxes" (PILOT) bond initiative. Approximately $75 million was dedicated to upgrading infrastructure at Hill East, Poplar Point, and the Southwest waterfront areas. An additional $140 million supported infrastructure projects surrounding the new United States Department of Transportation headquarters and within Federal Center Southeast. Later that year, in November 2006, AWC proposed a second bond offering totaling $100 million to fund infrastructure enhancements and environmental remediation at Hill East/Reservation 13 and Poplar Point. The agency also secured a portion of a $248 million Tobacco Master Settlement Agreement bond issuance to develop a $60 million medical office facility at Hill East. Furthermore, the city issued $140 million in PILOT bonds to finance a $40 million park along the Anacostia River and to back $75 million worth of various AWC initiatives. In February 2007, an additional $90 million in PILOT bonds was sold to support infrastructure improvements within Federal Center Southeast.

Anacostia River restoration and workforce development

In November 2006, AWC identified the cleanup of the Anacostia River as a key priority, emphasizing watershed-wide educational programs aimed at reducing pollution from diffuse sources. By February 2007, the agency implemented stringent environmental criteria for developers to control wastewater runoff effectively. These tailored environmental design standards received accolades from the National Capital Section of the American Society of Civil Engineers and GreenHOME.

A significant initiative involved establishing a training center for workers to advance local employment objectives. From its inception, AWC mandated that developers employ a workforce comprising at least 51% District residents, with a minimum of 10% coming from Ward 8. However, developers reported challenges in finding sufficiently qualified local candidates. To remedy this gap, AWC launched the Business Resource Center to vet applicants, connect residents with job opportunities, enhance their skills, and increase awareness about redevelopment projects in Wards 7 and 8. This center commenced operations on April 11, 2007, at 2311 Martin Luther King Jr. Avenue SE.

Dissolution

Concerns regarding AWC’s operations emerged in August 2006 when community advocates demanded greater involvement in redevelopment decision-making. Responding to these concerns, a member of the D.C. City Council initiated legislation aimed at improving transparency within AWC’s activities.

Following Mayor Anthony Williams’ decision not to seek re-election, Adrian Fenty won office and established a task force within his first 100 days to assess the potential restructuring or elimination of both AWC and NCRC. Shortly thereafter, Councilmember Jack Evans introduced bills proposing the dissolution of these entities and transferring their responsibilities to the Office of the Deputy Mayor for Planning and Economic Development. Public hearings led by Councilmember Kwame R. Brown revealed divided opinions regarding agency performance.

In February 2007, AWC CEO Adrian Washington unexpectedly resigned, with Deputy Mayor Neil O. Albert stepping in as interim CEO. Subsequent hearings underscored delays related to land transfers between NCRC and AWC. Albert presented five alternatives ranging from maintaining current operations to disbanding both organizations; however, these proposals met with limited support. Certain neighborhood organizations advocated for reform over complete dissolution, citing factors such as complex zoning regulations, restricted asset bases, and affordable housing requirements that impeded progress.

Councilmember Brown suggested forming a new "D.C. Economic Development Authority" to consolidate functions and reduce salary expenses by $2.4 million. Both Mayor Fenty and Albert opposed this plan, preferring direct mayoral oversight to avoid additional layers of bureaucracy. Although Brown’s proposal initially passed through legislative tactics in May 2007, he withdrew his backing following discussions with Mayor Fenty.

On June 5, 2007, the Council unanimously approved Evans’ legislation terminating both AWC and NCRC. Mayor Fenty signed the bill into law on July 19, 2007. The legislation mandated that the city assume all assets and liabilities from both agencies and complete their integration into the Deputy Mayor’s office by October 1, 2007.

Subsequent developments

Certain members of the council expressed skepticism regarding the Office of the Deputy Mayor for Planning and Economic Development's ability to oversee a redevelopment initiative valued at $10 billion. Additional concerns emerged about the Anacostia Waterfront Corporation’s (AWC) incomplete accounting of its financial holdings and liabilities, leading Kwame Brown to call for a comprehensive audit by the D.C. inspector general prior to the October 1 deadline. By December 2007, members of the City Council insisted on enhanced supervisory measures for the Deputy Mayor’s office, which encountered opposition from Albert. Consequently, by April 2008, audits were mandated for both the Deputy Mayor’s office and its associated redevelopment projects.

On September 23, 2007, city officials forecasted that merging AWC and the National Capital Revitalization Corporation (NCRC) with the Deputy Mayor’s office would result in annual savings of $5.6 million on salaries and administrative expenses. Employment offers were extended to only 20 out of AWC’s 31 staff members as part of completing the consolidation by the legislative deadline.

Shortly after dissolving the corporation, on July 23, 2007, the Deputy Mayor’s office unveiled a redevelopment strategy for Poplar Point that notably omitted plans for a new soccer stadium, thereby dismissing a significant proposal previously advanced by AWC.

Progressing on January 16, 2008, plans moved forward for a $1.1 billion development project along the Southwest waterfront, with roughly 18% of funding provided by the Deputy Mayor’s office. This endeavor was projected to yield $32 million in annual tax revenues—an increase of $22 million compared to 2006—and was anticipated to create approximately 2,880 new jobs.

Further reading

• Avni, N., & Fischler, R. (2019). Social and Environmental Justice in Waterfront Redevelopment: The Anacostia River, Washington, D.C. Urban Affairs Review.

Bibliography

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“Transition Plans for AWC,NCRC Outlined.”

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External links

• Anacostia Waterfront Initiative, Office of Planning, District of Columbia Government