ANC Roundup: New Owners for "The Space"; Cafe Salsa Threatened with "Show Cause" Hearing; Veranda's patio

Several items of interest related to neighborhood restaurants to pass along from Wednesday evening's ANC2f meeting:

Many of you may be familiar with the ongoing saga of The Space, the trendy "private" nightclub operating in Shaw. The Space, it seems, was operating in violation to its liquor license and the voluntary agreement it had signed with its neighbors (more details can be found here). At February's ANC meeting, following a terse exchange with ANC2f chairman Charles Reed, the ANC voted to recommend that ABRA initiate a "show cause" hearing regarding the club, a step towards the revocation of the club's liquor license.

ABRA elected to proceed with a "show cause" hearing, and a date was set. However, while this was going on, some significant internal changes were occurring with the club's management that has left more questions than answers.

The Space owners, Mitchell Cox and his wife Heather Karen, put the club on the market--unbeknownst to The Space's neighbors. In April, a deal was struck by Cox to sell the club to Columbus, Ohio-based veteran's organization "American Sacrifice Foundation". In an apparent attempt to circumvent ABRA's pending hearing and the potential loss of the club's liquor license, according to comments from Chairman Reed, a deal was proposed to ABRA that would make the American Sacrifice Foundation a 10% owner of the club, with the Cox's retaining a 90% interest (and responsibility for day-to-day operations) in the club. ABRA rejected that deal completely.

Why a Columbus-based veteran's association would have an interest in owning a Washington, DC nightclub was not discussed, and the ABRA-rejected deal between the Foundation and the Cox's leads one to believe that something more is going on here than initially appears.

Whatever the relationship between the Foundation and the Cox's, at this point the ownership issue of the club remains murky. A representative of the Foundation was in attendance at the meeting and indicated that the club had been completely sold to the Foundation, and that the Cox's no longer had any interest in it. However, Mitchell Cox's name remains on the lease for the premises, and--according to the club's representative--many details remain "to be worked out."

In the meantime, ABRA has issued an order--which has been drafted but yet released--detailing how the matter will be handled. According to neighbors, The Space has been closed for the past several weeks. The Foundation representative indicated that when it reopened, it would be a completely different type of operation, something more akin to a "VFW hall". So while the future of The Space's operations is unclear, what IS clear is that whatever opens in its place will be operated under much closer scrutiny by the ANC.

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Also discussed at Wednesday's meeting was recently opened 14th Street restaurant Cafe Salsa. It seems that Cafe Salsa's rear vent fan, which many neighbors have complained about, is not only obnoxious--it is a violation of the voluntary agreement signed between the ANC and the establishment.

Unfortunately, no representative of the restaurant was in attendance at the meeting, which appeared to irk Reed. Noting that the owner had indicated that "approvals were in place" to move the fan, without being in possession of any documents proving that assertion, Reed moved to send a letter to Cafe Salsa threatening them with a "show cause" hearing unless the problem was addressed. The ANC will take up the matter again at the July meeting.

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One final note: during the early part of the meeting, Reed, in discussing problems with DDOT representative Chris Ziemann, cited a persistent problem of parking in the public space. To those unfamiliar with DC's arcane property ownership structure, many property owners do not in fact own the land immediately in front or to the side of their properties; this land actually resides within the public space, and parking here--or otherwise using the land--is illegal. As one particular example of this, Reed cited the existence of a parking pad and an illegally constructed concrete patio in front of Shaw restaurant Veranda.

Reed put forth a motion--passed unanimously by the ANC--to issue a letter to DDOT encouraging them to crack down on such public space violations, going so far as to say that the Veranda patio should be "shut down" if compliance is not gained.

It's worth noting that the matter is up to DDOT, not the ANC, and that while it is DDOT's responsibility to ensure that District laws are followed with regards to the use of the public space, it's unlikely that Veranda's patio would be "shut down" over this issue.

For more information about upcoming ANC2f meetings, and to view notes from past meetings, visit their website at http://www.anc2f.org/.

ANC Set to Tackle 'The Space' and 'Cafe Salsa' on Wednesday Night

There are a couple of interesting items for tomorrow evening's ANC2f meeting. In addition to the usual transportation and crime and safety reports, two ABRA matters might get the community's attention.

The ANC will hear complaints regarding newly opened 14th street restaurant La Cafe Salsa's vent fan, which according to nearby residents is exceptionally loud. Attempts to work with the restaurant to come an agreement without involving the NC were unsuccessful, so Chairman Reed et al will discuss the issue tomorrow evening.

The second matter deals with an issue that we have written about previously; that is, upscale Shaw nightclub The Space. When we last heard from The Space, owner Mitchell Cox was cursing at Chairman Charles Reed and angrily dismissing complaints from neighbors regarding noise, sanitation and violations of the voluntary agreement signed with the building next door. The tense meeting ended with Reed requesting a "show cause" hearing with ABRA, the first step towards a potential revocation of the club's license.

According to a neighbor of The Space familiar with the proceedings, Cox subsequently sold the club to a nonprofit 501(c)(3) organization, which now operates it. The sale of the club resulted in no findings against the club being presented at the "show cause" hearing before ABRA. Whether this is satisfactory to residents and neighbors remains to be seen, but the issue will be discussed tomorrow evening.

The full agenda for the meeting can be found at the ANC's website. The meeting will take place Wednesday at 7:00 PM in the Washington Plaza Hotel on Thomas Circle.

More on The Space

Wow, The Space conflict has drawn a lot of comments. I do think, however, that we need to give some additional information and respond to some comments, so that all of those reading and commenting can better understand the hows and whys of this issue.

Voluntary Agreements
You have all seen businesses with their applications for alcoholic beverage licenses posted in front windows. Of course, the very reason that these applications must be posted publicly is to allow an opportunity for public comment. Any group meeting certain criteria can protest the license either before it is granted or before it is renewed. Also, a neighborhood group can elect to avoid a protest by requesting a voluntary agreement with the establishment. A voluntary agreement can include any terms that all involved parties agree to. If the members of a condominium association properly execute a legal agreement to not cook with garlic, it is enforceable regardless of how odd one may believe the provision to be. In the end, The Space is in violation of a legal document that it chose to sign. In the case of most contracts, a civil suit is the only way to force compliance. However, because of the way DC liquor licensing works, the voluntary agreement with The Space is on file with ABRA, and it has enforcement power as well.

Crackhouses and Other Woes
Yes, if there is a crackhouse down the street, it should shut it down. Yet, for all we know, residents have pursued action against the alleged crackhouse. It is quite possible that the police have been called and/or that complaints have been made to the appropriate DC agencies. It is also quite possible that the same people who have complained about The Space have taken action against the crackhouse. I and most of our commenters simply have no way of knowing. Also, a crackhouse down the road does not make what The Space is doing an more legal or ethical.

Residents, new to the neighborhood and well-established all care very much about crime. The new blog, Borderstan, which exists primarily to bring attention to crime issues, has been incredibly popular. As well, the ANC 2F Crime and Public Safety committee is quite active. If you attend meetings, you will find that as much time is given to crime as any other subject — even alcoholic beverage license requests. Being concerned about one topic does not make one any less able to be concerned about another topic. On this very blog, we often write about crime, but we also devote a lot of space to less serious topics like shopping and dining.

This Neighborhood vs. That Neighborhood
There have been liquor license protests launched by every type of group in every neighborhood in DC, even in areas known for nightlife. For example, the very well-known, quiet, high-end Georgetown restaurant 1789 could not build a deck because its neighbors objected to the potential noise from outdoor diners. On 17th Street in Dupont, you can not enjoy an alcoholic beverage outside after midnight due to voluntary agreements between the local ANC and area bars and restaurants. And though DC law does not require drinks to be off of the bar until 3 a.m., there are very few bars that can stay open that late due to restrictions placed on them by neighborhood groups. Love it or hate it, these restrictions are just a part of life in DC.

That said, these stipulations are not unique to DC. Alcoholic beverage control boards exist not just to extract licensing fees but to protect citizens from some of the negative impacts that bars, clubs, and restaurants can have. I would love to limit the potential for protests without merit to interfere with alcoholic beverage licensing. In this blog, we have written about voluntary agreement proceedings and protests that were excessively burdensome to local businesses (Black Cat, Stoney's, Queen of Sheba). But not all protests are created equal. It is unfair and illogical to equate the protest of a sleepless neighborhood resident to the protest of an ANC overly cautious about a small cafe adding seating.

Because of limited inspection resources, ABRA relies on citizen groups to provide information prior to and after licensing. It makes sense that Shaw, now more populous and active than it has been since the 1968 riots, is now home to more people who would protest an alcoholic-beverage license. Propensity to protest is probably correlated to factors like familiarity with the ANC, knowledge of DC regulations, comfort with writing complaint letters, and the amount of free time one has available to make a protest. There is nothing inherent in one's race that should increase ones likelihood of protesting, and I find it upsetting that one anonymous commenter feels the need to claim that there is.

Profit brings with it responsibility
The primary reason a business opens is for financial gain, therefore it behooves a potential business owner to do all that he can to mitigate loss. It is the business owner's responsibility to either learn all of DC's complicated codes in order to avoid fines and legal action or to hire attorneys to guide the process. If Mitchell Cox did not abide by applicable laws and regulations then he either failed to conduct his due diligence as a business owner or he hoped not to get caught. Either way, it is not the responsibility of his neighbors, the ANC, or the DC government to limit the damages to him from legal actions.

Also, when it comes to the inconveniences created by businesses — mostly noise, garbage, and crowds — the burden should fall on the business, not residents, to moderate those inconveniences. The party who receives the most benefit (profits) should bear the greatest costs. So, while The Space's neighbors could invest in white noise machines and sound proofing or plan to spend every weekend away from home, it does not make sense that for the limited benefit of one business on their block that they may or may not patronize that they bear those substantial costs and inconveniences. As well, in terms of overall economic burden, the net cost to the Space of modifying its building and operations is far less than the net cost to residents of home modification, sleeplessness, and loss in home value.

Most neighborhoods in DC have more homeowners than businesses. And many, if not most, of those homeowners regardless of their neighborhood prefer to be able to rely on some peace and quiet, particularly at night. Generally speaking, excessive noise lowers a property's values, even in dense urban areas. Just as we want to encourage business ownership in Shaw, we should also want to encourage potential homeowners to be comfortable enough to invest in the neighborhood. Even in Manhattan, I imagine there is limited demand for housing directly adjacent to un-soundproofed nightclubs.

If you like The Space . . .
and do not want to see it close, direct your anger at Mitchell Cox. There is nothing about our ANC or about DC laws and regulations that prevent him from operating an elegant club in Shaw. All he had to do was to operate legally and ethically. Personally, I'm not interested in patronizing The Space; it is just not to my tastes. That said, I would be more than happy if several such establishments opened up nearby provided they operated legally. Our immediate area would indeed benefit from more businesses.

Cox has become a bit of a lightening rod not only because of what he has done but because of how people feel he has treated them. He appeared at an ANC meeting swearing incessantly and violating the rules of order. It is hard to be sympathetic toward Cox or want to work with him when he has a record of such unpleasant public behavior.

Western Shaw will not only survive but thrive without The Space.
The Space is not the one critical pioneer business that will revive Shaw. Yes, Shaw has had a tough past and, no, it is not as safe, elegant, or commercialized as Georgetown. But within three blocks of The Space, Veranda, Azi's Cafe, Queen of Sheba, Vegetate, Old Dominion Brew House, and Corduroy are already well established. On the way is the new Giant/O Street Market complex and the Marriott convention center hotel. As for the allegation of one anonymous commenter that the young professionals living on and near 9th Street NW are anti-development, I have found that most people support development around the convention center. Surely anonymous has not been to the ANC meetings where residents are salivating to know when the ground will break for the hotel complex and the O Street Market. The thing is, a hotel with an underground ballroom and proper parking management is not going to keep nearby residents up all night.

Running Out of Space

February's ANC2f meeting promised not to be short on drama, what with the commission meeting to discuss, among other topics, the future of neighborhood members only public club The Space. We'll address the other issues discussed at the meeting in a later post, but for now we wanted to present a brief recap of the "Space issue" if for no other reason than the fact that this very blog was entered as evidence at the proceedings. An epic win for 14thandyou? Perhaps.

The Space, as you may recall, was the subject of much discussion at January's ANC meeting. Specifically, it was the target of much ire from a group of Shaw residents who live adjacent to or close to the club. Since no one from the club was present at the January meeting, the commission held off on making any decisions until Wednesday's meeting, where the club had an opportunity to present its side of the case.

In the eyes of this blogger, they would have probably been better off had they not appeared.

The ANC has no voluntary agreement with The Space, leaving it powerless to file a protest to suspend its liquor license directly. The Space does however have a voluntary agreement with the building next door, and with ABRA. The ANC can thus move to petition ABRA for a "show cause" hearing, which is essentially a hearing before the regulatory agency to determine whether or not the license holder is in violation of its voluntary agreement. If ABRA finds against the license holder, its license can be revoked--essentially shuttering the business.

The residents had several main complaints centered around the club's operations, namely that they run a club under false pretenses, that their operations were disruptive to the peace of the neighborhood, and that they were operating an illegal outdoor deck.

The evidence against the club--consisting of numerous photographs, voluntary agreements and contracts, and the testimony of numerous neighbors--was immense, and a spirited defense by the club would be needed in order to stave off ANC action.

Which is why it was so perplexing when the club's lawyer approached the commission and began reading from a printout of this blog. That's right, 14thandyou was introduced as evidence in support of the Space. Why was this blog brought up Wednesday night? Well, so that their lawyer could read a quote from an anonymous commenter who likened living in Shaw to living in Adams Morgan--in other words, don't complain about the noise from the club ya yuppies.

(Sidenote: Even *I* wouldn't use items from this blog for my own defense, and certainly not comments from anonymous commenters. It was truly theater of the bizarre. )

The rest of the Space's defense was anything but coherent. Their lawyer began by claiming that he had only learned of the meeting that afternoon; commissioner Charles Reed found this odd, seeing as how he had a phone conversation with owner Mitchell Cox over a week ago where the matter was discussed. Strike one.

The Space also maintained that they were a "members only" club in spite of the fact that their website advertises that it is "open to the public". Justin, the club's manager indicated that he believed that a "member" was merely someone who paid an entry fee of $5.

"That is a cover charge," Reed remarked "not a membership fee." One woman in attendance testified that she had entered the club for free and drank at the bar, leading Justin to remark "What, did you want us to charge you?"

Pretty strict membership criteria they have there, apparently.

The rest of the defense was no more believable: the music isn't too loud because Cox said it isn't. The deck may be illegal, but they don't allow drinking on it--in spite of multiple photos showing that they did. The club isn't responsible for the overflowing mountains of trash in back of their building, because for all Cox knows the neighbors have been sneaking over and putting their trash in his bins.

And on and on it went, with the commissioners growing increasingly skeptical of the Space's defense, and Cox growing increasingly agitated. At one point, Cox interrupted another speaker, leading Reed to slam down his gavel and declare Cox out of order. "Ah, fuck it" was Cox's response.

In the end, the ANC did the expected and voted unanimously to request a "show cause" hearing with ABRA, where the Space may very well be in danger of losing their license. Cox's indignant attitude at Wednesday's proceedings certainly did him no favors; if he hopes to avoid a license revocation before ABRA he might want to spend a bit more time polishing his defense.

As for the neighbors, a brief round of applause broke out after the ANC's decision. For them, Wednesday night was the first victory in what has turned into a protracted fight over a club whose owner just doesn't seem to get it.

Franklin School and The Space

The Space, which has angered its Shaw neighbors, is once again on the ANC 2F agenda. The club, controversial for its noisy late-night operations in a residential area, has been subject to ABRA investigation but not to any enforcement action. For a little history of the conflict, read Mr. 14th & You's description of last month's ANC meeting here. Though the meeting will start at 7 p.m., this matter is not scheduled to come up for discussion until 7:45. If you are one of the residents affected by this club, make your way over to the Washington Plaza Hotel in Thomas Circle by then.

Another important item up for discussion this month is a proposal for the use of the Franklin School. Since the closure of the emergency homeless shelter this past fall, the building has not been in use. What will be interesting to see is not only what the proposal is, but whether Jack Evans, who expressed strong interest in redeveloping the property during campaign season, shows up. This agenda item is scheduled to be addressed at 8:45.