Sluggish Economy Means Developers Are Tapping the Brakes

Ask any developer about when ground will be broken on the lengthy list of downtown Bethesda's pending developments, and they'll tell you that it all depends on the economy.

"We were approved last year, and we're just in a holding pattern right now," said Jim Alexander of Polinger, Shannon and Luchs, a Chevy Chase-based development firm approved to build 61 condominium units on Rugby Avenue in Bethesda.

"The Rugby," as the project is known, but has not yet broken ground.

For many of the about 10 approved or pending projects in Bethesda's central business district, development has been on hold, according to Ken Hartman, director of the Bethesda-Chevy Chase Regional Services Center. Most of the approved projects in the CBD have residential components, which means having a market in which units are likely to sell plays a key role for developers to move forward, Hartman said.

Probably the most visible example of delayed development in Bethesda is the Trillium, a project expected to bring three residential towers and just under 200 condos to the corner of Battery Lane and Wisconsin Avenue. Trillium was originally expected to begin construction in 2008.

Patrick Healy, who manages sales and marketing for the project with developer Patrinely Group, said he couldn't give a firm date as to when the project would continue.

"The market needs to cooperate for anything to move forward," he said. 

For now, the Wisconsin Avenue site is an empty lot quartered off by a fabric fence — and some residents have called the project an eyesore.

"It has an unsightly appearance, not only for the residents of the neighborhood but anyone who visits," said Bethesda resident Robert Nelson. "Ironically, it's right adjacent to the area where there's the Bethesda welcome sign."

Healy said the development company had responded to a few concerns about the site's appearance, like fixing a sign that was torn. "We respond to whatever we hear," Healy said.

Other residents are concerned that once the economy turns back around, construction projects will pick up speed at the same time in relatively close proximity in downtown Bethesda. Should that happen, "the downtown will be a total mess," said Jon Weintraub, who heads the Downtown Bethesda Condominium Association.

However, Hartman said, county officials should be able to mitigate the effects of construction on the community.

"The economy is not turning around in a way that will create a gold rush," he said.

Weintraub also raised concerns about an uptick in construction compounded by the development of county parking lot 31.

Lot 31, a pending 1,300-spot parking garage project, is the most notable exception to sluggish development in the central business district. It's expected to move forward in the summer of 2011, earlier than anticipated.

The development of the lot will require temporarily shutting down a portion of Woodmont Avenue. (Read Patch's coverage of the Lot 31 project here.)

While residential development has stalled, some commercial development is underway. .

Though some worry about the effects of contruction in the community, others see more development in Bethesda as a positive for the community.

"Let me tell you, that will be a good thing," said John Gordon of Polinger, the Rugby developers.

More housing options play a role in making housing more affordable, Gordon said, which is key to drawing in new residents and boosting business in Bethesda.

"It's a pain to have construction – you've got traffic and all of those kinds of things – but in terms of making downtown Bethesda and the Woodmont Triangle a more vibrant place, you need more people there."