Future of the Warehouse

Posted By Tina Chen, 04/24/07 9:49 AM

To our friends and supporters:

Bad news in the mail last month - Warehouse property taxes for next year are increasing over 500%.

Needless to say, this is a huge blow to our precarious business model.

What does this mean for the Warehouse? We're not sure.
- We have begun the appeal process.
- We are committed to maintaining our current operations through the Fringe Festival in July.
- It is possible that we will be able to operate into the fall and beyond.
- We are considering a move of all or part of the Warehouse to another location.

It is extremely difficult to operate a small, independent business in the current climate of soaring property values. Despite the wonderful support of Washington's artistic community and our regular customers, the Warehouse is not a money-making operation. The increased tax burden makes it difficult, if not impossible, to see how we could continue to operate in our current configuration.

We are dedicated to the artistic vitality of our city and remain committed to contributing to an exciting place to live. We have dedicated the last 13 years to providing a home for interesting and creative theater, music, and art. We have enjoyed (almost) every minute!

Thank you for your support! We will keep you informed as we move through this proces.

See you at the Warehouse!

- Molly & Paul Ruppert

+++

our next art opening
sat april 28 6-10pm
NO REPRESENTATION
[abstraction in the capital]

+++++
Warehouse Arts

1021 7th Street NW
202 783 3933

www.warehousetheater.com

Categories: News | Comments (17) | del.icio.us | Linking Blogs

Comments

How AWFUL! Warehouse is such an asset to Mt. Vernon Square/Shaw/7th Street/the Convention Center/Washington/etc.! Such a tax increase is clearly misguided.

Posted By Shaw Rez / At 4/24/07 11:49 AM

So, it's clearly not just the poor who have been hit hard by "Gentrification".

Posted By Martin Moulton / At 4/25/07 5:45 AM

This is the role of the arts in urban development.

Find another marginal neighborhood and start over. When you make that neighborhood popular, you will be priced out again, forced to find a third marginal neighborhood and start yet again.

Obvious development aim: purge arts from the District of Columbia and replace it with "arts-oriented retail."

Posted By Mike Licht / At 4/25/07 8:00 AM

maybe you can sell your property to a developer who will put a National Geographic destination development on your site.

Posted By rr 446 / At 4/25/07 8:15 AM

Looking into this...the whole block has been jacked up that much. Most of it is owned by Jemal (& vacant) but this threatens several established businesses who own (warehouse, marrakesh, alpersteins, Eritrean center) and lease (midas, avenue, eagle bar, parker gallery...)

Posted By Si Kailian / At 4/25/07 9:21 AM

ok, RR, I get it--my daydream was a bad idea also...

Posted By Shaw Rez / At 4/25/07 9:52 AM

??? bro, i'm serious! :-)

Posted By rr 446 / At 4/25/07 10:08 AM

ahhh, sorry--I misinterpreted your comment as sarcasm, rr! I thought you were poking fun at the NG idea that I'd posted in response to that other daydream post--my bad! I guess a week of late nights at the office is messing with my head!

Warehouse is such a unique and edgy draw to the area; I hope their appeal goes successfully.

Posted By Shaw Rez / At 4/25/07 10:55 AM

I'm pulling for the Warehouse. The space is just what an arts space should be: quirky. Although, there are plenty of Arts zoned storefronts a few blocks south if things don't work out.. I don't see how that could be cheaper than jacked-up property taxes though.

Posted By gpliving / At 4/25/07 11:12 AM

I think the Warehouse could survive if it changed its business model. As property taxes go up, the days are over where it can rely on modest nighttime independent entertainment to maintain itself -- meanwhile, it has a ton of space and what will be a prime location, yet it sits virtually empty during the day both during the week and on weekends. Why not drastically expand the menu beyond the 3-4 sandwiches that are (sometimes) available? Promote a popular Saturday or Sunday brunch with live music? Apply for a sidewalk cafe? Increase the tables and wait staff during the day, especially on weekends. Put a sign outside on the sidewalk with the specials and a menu in the store window. My point is, if they operated as more of a full service restaurant during the day, they could turn a profit. Just look at the lines in the Subway that just opened a few doors up -- they always have a crowd. I'm sure many people would prefer an independent option -- a place to get a good sandwich to eat in or to go. Sure, the other side of the convention center has Azis and Breakwells, and eventually we will have another cafe opening on 7th Street, but there seems to be plenty of opportunity for a place that combines art, music, and food at the Warehouse. This might not have worked ten years ago, or even two or three years ago, but times have changed.

Posted By Cary Silverman / At 4/25/07 11:16 AM

cashing in isn't a bad thing if it comes to that. that's what investors do. the ruperts are to be commended and thanked for hanging in when others were bought out by the developer. they've endured this convention center transition, at one point wasn't it a breakfast diner? but that was a long time go.

hey, who remembers the greasy spoon at 1101 5th street nw?

Posted By rr446 / At 4/25/07 11:54 AM

DCist picked this up:
http://www.dcist.com/archives/2007/04/26/warehouse_slamm.php#comments

Posted By Si Kailian / At 4/26/07 5:21 PM

I emailed the assessor, larry hovermale, who covers square 0450 and asked why the entire block went up 500%? His entire response: "Land sales support higher land assessments."

I did ask what land sales? No response yet...there have been no recent land sales on the block, merely building purchases by Mr. Clean a few years ago. So I'm not sure what sales would trigger the 500% increase. And isnt the market supposed to be stagnant?

Posted By Si Kailian / At 4/26/07 5:34 PM

I find it ironic that our District government will raise property taxes exorbitantly while at the same time do a poor job on collecting taxes from and properly classifying vacant properties and lots . . .

As far as filling the tax revenue coffers go, it's like opening up the faucet more and more while failing to plug the drain (i.e. collect from and properly classify vacant properties).

Posted By retracsemaj / At 4/26/07 5:42 PM

Tell me about it, sends me into a tizzy!

Posted By Si Kailian / At 4/26/07 6:30 PM

Of course this blows any logical business model. Nobody [NOBODY!] should have to plan for a 500% increase in taxes!!!!!!!!

Quite the outrage, but not quite unusual for DC.

DC Government doesn't seem to value small business or many long time residents for that matter. They only want the big dollars to roll in... and more tourists!!!

Posted By Nicholas McKenna / At 4/26/07 9:02 PM

I bet you all didn't know that vacant properties are assessed separately from occupied properties (even when the vacant property is not listed as vacant or paying the class 3 tax). On our block the "vacant" buildings were assessed much lower than the occupied properties because no "vacant" properties had sold in a long time.

The assessments on all properties on 7th and 9th were rediculously low. When owner's do not have to pay fair taxes, they just sit on the property until a big-time developer like Jemal comes along to pay top dollar. This keeps small businesses from buying and restoring old buildings. It has similarly reduced the number of affordable housing units because only developers (who turn the properties into high-end condos) can afford the outrageous prices. Owners/speculators should be forced to sell idle properties (through higher class 3 tax, 5%) to whomever will improve the buildings immediately. I guarantee the prices for these properties will come down.

Assessments on occupied commercial properties (especially small businesses) should be limited to a 10% per year increase. Currently, assessment increases on homes is limited to 10% per year.

Warehouse should be eligible for an special exemption since it is (I assume) a non-profit arts establishment. Contact Jack Evans.

Posted By Ed Six / At 4/30/07 2:18 PM