Underway: West End Library and Fire Station Projects
• January 14, 2015

Two long-awaited EastBanc projects got underway after a Dec. 15 groundbreaking: the redevelopment of the West End Public Library at 24th and L Streets NW and the D.C. firehouse at 23rd and M Streets NW.

Here are details from EastBanc: “Plans for EastBanc’s West End Library and Fire Station development project call for a new 21,000-square-foot library and 7,300 square feet of retail topped by 164 market-rate units – 71 condos and 93 rentals – and a new fire station topped by 55 affordable units and Squash on Fire — a state-of-art squash facility with eight courts and full-service restaurant. … The company is committed to bringing more residents to the West End neighborhood, expanding retail offerings … EastBanc has engaged world-renowned architect Enrique Norten of T.E.N. Arquitectos of Mexico City to design both buildings.”

The projects involve a public-private partnership between the District of Columbia, EastBanc, the JBG Companies and Clark Enterprises.

New Officers Take Over at Georgetown Business Association
• December 17, 2014

The GBA will be taken over by fresh blood when a slate of new officers take charge in 2015. Charles Camp of Charles Camp Law Offices is the incoming President, while Sonya Bernhardt, the publisher of The Georgetowner, will assume the role of Vice President. Also from the Law Offices of Charles Camp, Theresa Bowman comes to the GBA as Secretary. As for a new Treasurer, Alan Helfer of Gingsberg & Helfer, PLC, will take on the role in the coming year. All of the incoming leaders are new to officer positions in the association, which is “committed to maintaining and improving the climate for conducting business in Georgetown.” We wish them luck in the new year.

Gentlemen’s Night Out at RiRa
• December 8, 2014

Gentlemen’s Night Out made its debut at RiRa Irish Restaurant and Whiskey Bar Nov. 12. Roosters Barbershop, Goorins hat store, Stubble and Stache, Bull & Moose, the Trunk Club and Urban Stems exhibited and sold their wares. Roosters gave neck trims and hot towel shaves. Macallan showcasing its 10-year-old and 12-year-old whiskey. Look for more nights out in 2015.

Could Banking’s Past Become Its Future?
• December 5, 2014

Whenever I pass the intersection of Wisconsin Avenue and M Street, I am reminded of my father, a banker in my hometown for 35 years. Anyone who visits Georgetown knows the beautiful, gold-domed building with a marble facade that, once upon a time, was home to a local institution, Farmers and Mechanics National Bank, later a branch of Riggs Bank, and today a branch of PNC, as evidenced by the sign bolted over the door.

If (and when) PNC is taken over by an even larger bank, this will make it easier for the next owner to unscrew the old sign and attach a new one. It’s an apt metaphor for what we’ve learned during the past five or so years: you can’t bank on financial institutions that are too-big-to-fail and too-big-to-care. At first look, it would appear the local banks my father worked for are now a relic of the past, where bankers understood both banking and their customers—and where you went to the same church, supported the same charities, shopped at the same local stores, and your kids were on the same sports team.

My father’s experience—before the revolving door mergers began in the 1990s—was that the core profit for his bank depended on the community’s trust.

During the 1960s, like many cities across the country, our community was devastated by riots. But what I remember the most was how my father walked down the street to all his local customers, whose businesses had been damaged, and offered them on-the-spot loans to rebuild. He likes to say that every loan was repaid and those customers remained loyal—until the bank was taken over by a bigger bank and my father was forced into retirement.

Today in developing economies micro financing is thriving not because the customers are tycoons but because they know their customers. I’m not condemning growth and change, but for far too many global public banks it has become a faceless game of risk-reward, where underwriting is simply a FICO score.

While the bank my father worked for is history, I see signs of hope for the type of banking he practiced. Looking in our own neighborhood, you can see local institutions that operate on principles like those of one of the District’s most notable bankers, Robert P. Pincus, vice chairman of EagleBank. His success is rooted in his passion for giving back to the community and his personal policy includes buying suits from a local tailor and dining at locally-owned restaurants, instead of chains.

Other community banks include Bank of Georgetown and Cardinal Bank, which provide services to small businesses including construction loans and contribute to local charities. They are known in the community, and they know us, too.

Today, buying produce from a local farm, meat from a local butcher and carrying it home in an eco-friendly reusable bag is considered “trendy.” So, why don’t we consider banking local?

It might be worth examining the institutions we give our business to, and whether our bank is supporting our community. The definition of capitalism is increasing cooperation between strangers. Maybe it’s how we define “stranger” that is really the threat of “too-big-to-fail.”

*John E. Girouard, CFP, ChFC, CLU, CFS, is the author of “Take Back Your Money” and “The Ten Truths of Wealth Creation.” He is a registered principal of Cambridge Investment Research and an Investment Advisor Representative of Capital Investment Advisors, in Bethesda, Md.*

Vincent Orange to Host Small Business Summit, Dec. 12
•

At-large District Councilmember Vincent Orange was one of the leaders of a recent rally cry of “Where’s the $1 Billion?,” referencing the amount that he and others say was not spent on small businesses in the District as required by law.

Orange contends that, of the $1.4 billion that D.C. agencies were supposed to spend on programs for Small Business Enterprises (or SBEs) by the end of fiscal years 2011, 2012 and 2013, only $400 million was actually spent. Orange wants to know why the agencies can’t comply with the law, and he is determined to make them more accountable.

The council member is a man who knows the numbers and can effortlessly quote budgets and expenditures. His bottom line is that the money needs to circulate within the 1,200-strong SBE community so that the community can thrive and contribute to the overall economy. To that end, Orange has chaired three recent hearings which led to the passage of emergency legislation demanding the agencies must be in compliance, held a rally with 300 people, asking, “Where’s the $1 Billion?,” which garnered lots of attention from six media outlets, including the Washington Post, and has been instrumental in seeking a special “SBE Expendable Budget” audit by the District’s CFO for fiscal 2014.

Orange says that local business owners are outraged to hear about the shortage but are glad someone is looking into it.
The lack of small business support in the District is only one part of the picture, though. Orange lights up as he lists the reasons D.C. is the hottest market in the country, including a thousand new residents a month and 63 active projects, as well as some recently completed or in the works. He highlighted projects like the $7 billion Union Station development, the 11th Street Bridge project, a $2 billion Southwest Waterfront Project, the redevelopment of Walter Reed Hospital, the building of a new professional soccer stadium, and more.

But Orange brings everything back to the SBE shortfall issue by saying that – although the city provides a basis for tremendous economic success – small businesses must be brought along as well. When the money flows to small businesses, they contribute back to the economy by hiring D.C. residents and adding to D.C.’s tax coffers.

As the chair of the Committee on Business, Consumer and Regulatory Affairs, Orange has spearheaded a series of annual small business conferences. This year’s conference is being called the Small Business and Economic Development Summit III and will take place, 7:30 a.m., Friday, Dec. 12.

The day will begin with breakfast at the Hamilton Restaurant, followed by morning and afternoon workshops at the John A. Wilson Building, 1350 Pennsylvania Ave. NW, with a break for lunch at the Hamilton with keynote speaker Andrew Altman, CEO of Olympic Park Legacy Company, who was responsible for the master development of the 600-acre Olympic Park in London, England. Altman was also D.C.’s City Planner under Mayor Anthony Williams. He will discuss business opportunities, tourism and enhanced branding of District of Columbia and the Washington Metropolitan Region. The event will also include workshops on D.C.’s Olympic 2024 bid, bringing “Hollywood” to the District, procuring local and federal government contracts and economic development in the District more broadly.

The cost of attending the Summit is $75, and you can register with the Greater Washington Hispanic Chamber of Commerce at www.gwhcc.org.

Marilyn Thompson is the marketing/events director of the Georgetown Business Association.

December 3 Business Ins and Outs
• December 4, 2014

Neam’s Property Under Contract to Roadside Development
Known for its mindful remaking of historic properties, Roadside Development has the old Neam’s Market property at 3215-3217 P St. NW, also known as the Marvelous Market property, under contract.
Roadside has listed the property on its website as part of its portfolio: “Prime Georgetown Retail space available. Ideally situated at the intersection of Wisconsin Avenue, NW and P Street, NW, this marquee corner location has 13 dedicated retail parking spaces. The site offers tremendous branding, visibility and unparalleled accessibility.” According to Roadside, the building space is 5,873 square feet.

IN: CrossFit Balance

CrossFit Balance Georgetown is now open at 1251 Wisconsin Ave. NW., at the Reebok FitHub Georgetown store. The fitness trend has expanded across D.C., with new studios popping up in almost all of the District’s neighborhoods.
IN: Ledbury Pop-up Shop
Ledbury Clothing Store, headquartered in Richmond, Va., popped up again for Christmas shopping in Georgetown this season in the same location – 1254 Wisconsin Ave. – as last season. The store opened on Nov. 22 and closes Dec. 22.
Francesca’s Coming to M Street
Mid-level women’s clothier Francesca’s has signed a lease to open a store at 3128 M Street NW. The new store will mark Francesca’s second in the District, and will act as a flagship for the retailer in the mid-Atlantic, according to Geoff Mackler of H& R Retail. Francesca’s also operates stores in Bethesda and Pentagon City. Francesca’s is known for selling affordable fashion, with dresses ranging from $50 to $150 and handbags starting around $30.

COMING: Mashburn at G’town Court
Mashburn, a clothing store out of Atlanta, will be coming in 2015 to 3206 N St., NW, which is part of the Georgetown Court complex and in the former space of Neyla Restaurant and the long-closed
The store will stretch from Prospect to N Street with a women’s and men’s side. There will also be a coffee shop on the west side of the store, facing the courtyard. “Think L.L. Bean meets Starsbuck’s,” said the architect, who showed plans at the Dec. 1 meeting for the Georgetown-Burleith advisory neighborhood commission (ANC2E).

GBA Warms Up at Expanded il Canale Ristorante
• November 21, 2014

The Georgetown Business Association held its monthly reception Nov. 19 at the newly expanded il Canale Ristorante on 31st Street, just a few steps from the C&O Canal. GBA members and friends were there to talk about the November election results and to check out the restaurant’s added space, which once housed Cannon’s Seafood Market — and to get in from the cold.

Il Canale owner Joe Farruggio greeted the more than 100 guests with a great selection of food that included pizza, pasta, antipasta and cannoli. On hand were local politicians, designers, bankers and PR and media types as well as Italian Embassy staffers.

The next GBA get-together is a big one: the Annual GBA Holiday Party, 6:30 p.m. to 9:30 p.m., Friday, Dec. 12, at the Embassy of Ukraine at 3350 M St. NW and requires a government-issued ID at the door and an RSVP by 5 p.m., Dec. 9.
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Moleskine Storefront Coming to M Street
• November 13, 2014

Italian notebook maker Moleskine is moving in to Georgetown at 3029 M St., NW, in the lead up to the holiday season. The store will open its doors as a pop-up shop until January, when it will close to begin a permanent build out. The Moleskine brand began in 1997, when a small Italian company reintroduced a small leather-bound notebook popularized in the 19th and 20th centuries.

Since then, the company has expanded to sell planners, diaries, sketchbooks, bags, pens and pencils, and other reading and travel accessories. Moleskine products are already sold in the District at outlets like Target, Staples and Barnes & Noble, but this will be the brand’s first brick-and-mortar location in Washington, D.C.

EastBanc helped Moleskine make the move to Georgetown. EastBanc’s vice president, Philippe Lanier said, “Moleskine is a prominent lifestyle brand and will compliment the other lucury retailers in our Georgetown portfolio. Their arrival reinforces the neighborhood’s status as a premier retail destination.”

After the store moves in, Georgetowners will be able to get all their paper goods on one M Street block: Moleskine is moving next door at Paper Source.

Business Ins + Outs
• November 6, 2014

IN: Free People
Free People, a Bohemian apparel and retail store that sells women’s clothing and accessories, will open its first store in D.C. – at the former Fino Italiano space, 3009 M St., NW – by the end of the month. Owned by Philadelphia-based Urban Outfitters, Free People has more than 81 boutiques in the U.S. and two in Canada. It has six stores in the region.
IN: Rent the Runway
Rent the Runway will move into Cady’s Alley at 3336 M Street, NW, in mid-November. The store rents designer gowns, dresses and accessories.

OUT: Prince Cafe
The Georgetown Prince Café and Hookah Bar at 1042 Wisconsin Ave., NW, and its owner Ehab Asal have moved on. The business gained fame on WUSA Channel 9, which reported on its health code violations, including a “mummified rat inside the kitchen.” Local advisory neighborhood commissioner Bill Starrels observed: “The neighbors on all sides of Prince Cafe were thrilled that the business was moving on. The trash and grease was becoming a rat buffet. … Prince was a hookah bar that wasn’t even licensed for that. Chances are good that whatever replaces Prince Cafe will be a step forward for the neighborhood.”

Trickponi Pop-up, Nov. 6-9
A Trickponi pop-up in Georgetown will open at 3210 O St., NW, 11 a.m. to 7 p.m., Thursday, Nov. 6, to Sunday, Nov. 9. The pop-up will showcase collections from unique Middle Eastern designers as well as U.S. designers including Christin Chang, Shosh New York and Emm Kuo.

IN: Alice and Olivia
The hip woman’s clothing boutique Alice and Olivia is under construction at 3303 M St., NW. Its founder Stacey Bendet is the designer who aims to make “a trouser sexy.” She launched the brand at Barneys in 2002. It now sells in more than 50 countries. The Georgetown store will be Alice and Olivia’s 14th store. It should open by the end of November.
GeorgeTownPool Pops Up, Nov. 15
A preppy men’s and women’s clothing store, GeorgeTownPool, will pop-up Nov. 15 at
1063 Wisconsin Ave., NW, in the space once occupied by the Pleasure Place, next to Filomena Ristorante. The pop-up shop originated on Nantucket this past summer with ideas from hospitality leader Bo Blair. The store is run by Georgetown native and Gonzaga alum Marty Ellsworth. Mike Pabb of Smith Point is also involved in the store, which will carry local brands such as Smathers and Branson and Sissy Yates, as well as Lilly Pulitzer, Southern Proper and more. Call 202-669-2659 for employment opportunities. The pop-up runs through Dec. 31.

GBA Reception at il Canale, Nov. 19
The Georgetown Business Association’s Nov. 19 networking reception from 6:30 to 8:30 p.m. at the newly expanded il Canale restaurant, 1063 31st St., NW, will also be a “post-election celebration.” RSVP to 202-640-1279 or info@gtownbusiness.

Don’t Repeat Vanderbilts’ Mistakes
• October 23, 2014

Most people remember the Vanderbilts as one of the wealthiest families in our nation’s history – creating immense wealth to be passed on for future generations to prosper. Right? Wrong.

What Cornelius Vanderbilt got right was creating a shipping empire that began with nothing and amassed a multi-billion dollar fortune.

What he got wrong was planning for the future of his fortune.

There are three stages in everyone’s financial lives from the accumulation phase to the protection payout phase and, finally, to the legacy phase. We spend our lives working tirelessly to provide for our loved ones, then we work to preserve that wealth believing that what is important is what we leave behind when we are gone.

This is only half of it.

Just ask Cornelius Vanderbilt. Seventy years later and his fortune has been squandered by the same family he was seeking to provide for.

You don’t have the fortune of a Vanderbilt. Few do. For some it is about money, but we should all begin to think of wealth, and for that matter estate planning, in a different way. We should all begin by asking ourselves: What is true wealth?

When I ask my clients what they think the most important thing to pass on to their beneficiaries is, they say financial assets dead last. But many, if not all, estate plans start and stop with a dollar amount.

If it’s just the money, then you should rejoice. This summer the D.C. Council approved a package of extensive changes to the tax code including raising the state estate tax exemption from $1 million to $5.25 million and bringing it in line with the federal tax code.

This may sound like an opportunity, and it is for the financial industry, which is trying to convince you to buy their last engineered product designed to pass as much of your wealth onto your children a legally possible. That’s a great instinct but too often people are persuaded by financial industry sales pitches that offer no advice other than how to make their estate plans as tax–efficient as possible.

Remember the Vanderbilts? You should.
Cornelius’ estate plan was flawless, but what he forgot was that, with money comes great responsibility. When it is handed to you on a silver (or gold) platter, your children, those same beneficiaries, often lose out.

It is important to sit down and create an estate plan, but it is just as important to sit down with your children and teach them your values, the meaning of hard work and the importance of charity.

There are a number of tried and true ways to do that, including family foundations to continue charity work, and leaving your money in a fashion that encourages entrepreneurship, such as a family “bank.” That’s what has sustained Europe’s Rothschild family of bankers for two centuries.

It’s the job of a financial planner to look at your hard earned dollars and make sure you can sleep at night knowing that you left your money in competent hands.

There’re many ways to set up an estate plan. I can show you how to plan for the next generation’s future while accomplishing your own goals. I can tell you how to make the most of the new tax rules in Washington, and how to ensure your children get the most of what you leave behind.

But the most important advice I can give my clients is to think about the good they want their money to do instead of the ease of luxury it might provide. I suggest that they ask themselves what they should do today to make sure their fortune and their legacy last longer than 70 years.

John E. Girouard, CFP, CHFC, CLU, CFS, is the author of “Take Back Your Money” and “The Ten Truths of Wealth Creation,” a registered principal of Cambridge Investment Research and an Investment Advisor Representative of Capital Investment Advisors, in Bethesda, Md.