New business ordeal

[from Ken Rubotzky]

I felt the time had come to share my experience.

In 2002, I bought a building on Upshur Street, with the intention of opening a business. In 2003, DC's Office of Tax and Revenue's (OTR) reclassified this building from vacant to commercial. But OTR has retroactively reinstated the vacancy status without explanation - and I have had no success in pulling my building from this list after many phone calls, emails, and meetings with city council staffs. (A vacant building is subject to liens, fines, higher taxes and other actions.)

When I first moved into the property, there were drug dealers on the stoop, graffiti on the walls, and 6 feet of garbage covering steps to the basement. All gone now primarily because of my ownership. I paid Washington Gas to provide gas service to the building which took the better part of a year. I hired neighbors to help me move bakery equipment into the building. I work closely with ANC commissioners to end the dumping and drug-dealing that continues in the alleyway behind my building. But OTR cares not, neglecting to return calls or to visit the property.

Over the last two years, I have invested thousands of dollars in equipment, utility payments, and property taxes. But OTR says none of that matters -- that my building is "vacant", and I must pay fines.

I have paid for a certificate of occupancy and am waiting for final inspections. My understanding is that the revitalization of Petworth is one of DC's major initiatives and goals. Mayor Williams wants new businesses to open in depressed areas. But my experience with this initiative is just the opposite with no promise of relief.

Ken Rubotzky
Torta Bakery
225 Upshur Street NW

Comments

[Marcus]

Wow, that stinks. How can they possibly hope to revitalize the area if they ignore small business owners? Especially when they WANT small businesses to open, supposedly. Are they just lying?

[Ken Rubotzky]

AJS, many thanks for your essential help.

Latest news is that I paid the city $2,000 in penalties, filed an appeal on the vacancy ruling which will be reviewed some time after January 2006. Final inspections are scheduled and should be complete in two weeks.

DCRA has requested additional paperwork from me, at which point I should be able to get off the vacancy list.

[AJS]

Today, Marc Fisher in the Post wrote a great piece on the bakery and Ken's ordeal. I pitched the story to him a couple of weeks ago and he obviously found it worthy.

The best part of the piece is that he focuses on the important role the members of the neighborhood have played in helping out. And most important, he notes the crucial role played by Petworth News. Thanks, Bill, for all you do.

http://www.washingtonpost.com/wp-dyn/content/article/2005/10/17/AR2005101701772.html

[Gabriela Mossi]

I would like to simply say that what small business owner Ken Rubotzky is going through is appalling. I remain positive, however, that Ken and his supporters will be able to attract the attention of the media. Perhaps this finally will help resolve his red tape entanglement. Petworth neighbors will hopefully be able to enjoy not only a high quality bakery but an exceptional neighbor. Ken has given many pro bono hours to several neighborhood revitalizations efforts in Adams Morgan and we are sure he will be just as committed to the betterment of the Petworth community.

[Ken Rubotzky]

I just phoned OTR and spoke to Martin Skolnik, Director of Property Assessments. He told me his agency sent a letter to me on Friday denying my exemption for vacancy a second time. He was unable to comment on whether OTR has ever mistakenly declared a building vacant since they take their cue from DCRA. You may recall that DCRA gave me 60-days to get a Certificate of Occupancy. You may also recall that I have already paid for the certificate and will get the certificate this week, just days after my tax is due. If OTR gave me just an extra week then I wouldn't be paying quadruple taxes and be classified as vacant.

Is it just me, or could there be a better way to promote small business development in our drug-weary neighborhood?

I asked Mr. Skolnik if he knew how my building got on the vacancy list in the first place. He did not know--again, directing me to DCRA.

He made sure that I understood my rights to appeal the decision to yet another agency in the District. I can only imagine what nightmares await me as I try to convince another DC agency that my bakery is not an abandoned automobile, or a nuisance property.

Many thanks to my Petworth neighbors and friends for their heartfelt support and brave efforts to get through to OTR. Your calls did help in galvanizing the agency. You have the power to make change happen and to help others.

[Samer Najia]

Ken is a long time friend of mine, and I've been watching him toil over this for some time. It continues to amaze me how in this, our nation's capital we have, and continue to have a level of incompetence, stupidity, red-tape and utter corruption as far as I can see that surpasses the Federal Government's worst infractions. It boggles my mind that DC still has that "you can only inspect your car at two stations every year"...or has that finally changed? After Marion Barry managed to pillage the city for his term as mayor, and with the incumbent focused on attracting big business with his baseball team, it doesn't leave much for those people that carry this country on their shoulders -- small business America. What a disgrace. Between the absurd taxation (without representation) and the red-tape typified by Ken's nightmare, I'm glad I live and work outside the city.

[Ken Rubotzky]

This afternoon I went to see the Deputy Mayor in charge of Economic Development, Stanley Jackson. Perhaps if I saw him, I thought, I would get some solid help. I tried to phone his office this morning during business hours and wasn't able to get a person on the phone. So I left a voicemail, I received no reply today to that voicemail. On 18 August I faxed him about my problem and never got a reply. The fax number was verified today and a staffer I talked to wished he had seen it earlier. This staffer planned to talk to the Deputy Mayor about my issue at 3:45pm, so it was opportune that I showed up at the office, but the Deputy Mayor never showed up. I waited from 3:20pm until 5pm but I was unable to make contact with him. So I signed the Deputy Mayor's visitor book. One day a mayor, or a deputy mayor will find out about my problem. But not today.

[Ken Rubotzky]

Thanks Erin for making the call. You can see the difficulty in getting a straight answer, or to have a person take ownership of the problem. Without the help of all of you who emailed or phoned I would have been ignored, as was happening for three months. Four times now, I have heard "we'll get back to you", or, we will have to wait for an important decisionmaker to return to the office. But then no one gets back to me, I have to call them again. Or, the decisionmaker returns only to have another critical thinker leave on vacation.

Anyone involved in financing knows the value of time and prompt replies. We have all met sincere businesspeople who get back to us promptly, that explain the situation, offer details, and give next steps for action. Our stewards at OTR do none of this.

OTR requires small business to reply in a timely manner, to honor it's obligations, to help government do their job. I have done that in earnest. So where is OTR's good faith effort? Where is OTR's timely response?

Robert McKeon is an Attorney at OTR.

[Erin]

This morning after unsuccessful attempts to get through to OTR through the Mayor’s call center, I was told all I could do was to call the OCFO to make a complaint about OTR.

When I called OCFO I spoke with the Administrative Officer to the CFO, Ms. Madison. When I started explaining my situation she actually was already aware of Ken’s bakery issue – she told me that their office has received a number of emails about it. Apparently this issue is now being decided by the attorneys in the CFO’s office, so she put me on hold while she called them to get an update on what was going on. The upshot seems to be this. Tom Branham (442-6702) is Chief of Assessments and is the person who originally turned down Ken’s application for reclassification as occupied (sorry if my grasp of the process is flawed). They are planning to re review this decision on Monday when the Director of the Real Property Diversion, Marty Skolnik returns.

I asked about the taxes in the meantime, but this was out of Ms. Madison’s purview. I also asked why such a property that someone is clearly in the process of developing would be classified as vacant (thinking maybe there is some rational explanation somewhere) but she said this is a question for the lawyers. She gave me the name of one additional person in the office: Attorney Robert McKneow (sp?) (442-6500).

Ms. Madison was extremely helpful and took time and trouble to try to answer my questions and get the story from the attorneys. The issue isn’t exactly in her court but she even said to call her back if necessary. She can be reached at 727-2476. It was a relief to speak to someone who seemed to understand and appreciate the frustration of this from the citizen’s perspective!

I decided to leave contacting the attorneys to someone more directly involved in this.

[Ken Rubotzky]

Regarding that fax I sent to the Mayor's office, it was assigned EOM tracking number 453938. I just called the Mayor's call center and this tracking number is labeled as "Abandoned Automobile". Last I checked my bakery was not on wheels. Still no luck reaching anyone in the Mayor's office.

[Ken Rubotzky]

When I faxed Mayor Williams Sunday morning about my situation I received an email reply that Amber Wilson, the Mayor's contact at OTR would get back to me in five days. Friday will be day five. I have heard nothing yet regarding this fax I sent. Thanks for trying to reach her, or anybody. It is quite a challenge to get a response, as you can tell. By end of business tomorrow I will have to pay quadruple tax.

[Ken Rubotzky]

When I faxed Mayor Williams Sunday morning about my situation I received an email reply that Amber Wilson, the Mayor's contact at OTR would get back to me in five days. Friday will be day five. I have heard regarding this fax since Sunday. Thanks for trying to reach her.

[Erin]

I just tried to get through to OTR. It is frustrating. Several of the numbers I tried went to voice mail. When I called the main number (727-4829) I was put on hold and finally gave up. Then I called the Mayor’s call center 727-1000 and asked for a contact at OTR. They said that the contact is Amber Wilson but the number they gave me (442-6485) is currently out of order (for next day or so). Finally I reached Ms. Wilson’s voice mail by calling back the call center and asking them to connect me to her through her private line. (They’ll connect you but won’t give you the number). I got her voice mail. Maybe if we all try to contact her eventually someone will get through and can pester them into addressing this issue. Just a thought.

[Ken Rubotzky]

All inspectors arrived. I knew that I would not pass fire just yet because my old fire control box is not supported any longer. But ADT will check it out tomorrow--that was the best that I could do on short notice. I have some minor items like a closer on a back door. And electrical will be fine when fire inspection passes.

I knew that I wouldn't pass on the first try because of my old fire control system. The company was bought by GE and GE is not ready to take over old products. I am so close to running a bakery. But without some sort of relief, OTR's quadruple taxes will wipe me out.

[Ken Rubotzky]

Inspections for certificate of occupancy are today. The bakery received approval on one this morning. Waiting on three others today. If I get approvals on all inspections there is a chance that I can get the certificate of occupancy before Monday and be freed from OTR's vacancy list.

[AJS]

According to OTR's website, a man named Sebastian (Ben) Lorigo is the head of OTR. His title is Executive Director, Office of Integrity and Oversight and Acting Deputy CFO, Office of Tax and Revenue.

I could not find an email address for him. I believe he reports directly to Natwar Gandhi, the District CFO.

[Erin]

Does anyone know what we can do that would me most useful? I am planning to call OTR later today and to try to get a hold of one of the men named in earlier postings, but it is hard to advocate when you are unfamiliar with all the ins and outs of the process and of the case (and have no official involvement). If there is something that we can do that would help, let's figure it out!

[Joseph Martin]

Do we need 30 residents to show up at OTR and demand that they treat you like a human being?

What's happening to small business people who aren't building a network of support as Ken is?

I feel like swearing...especially when I know there are so many of us who would love to see new neighborhood-oriented shops and restaurants in these closed storefronts.

Joe Martin

[Angela]

Ken,

Businesses like yours are exactly what DC neighborhoods need more of. It's very disheartening that the OTR is violating the spirit of regulations like this.

I'll send an e-mail to OTR too. You have my best wishes for lots of success when your bakery opens.

[Ken Rubotzky]

I thought this chronology may help clear things up a bit.

October 2004 -- OTR rules bakery vacant. Washington Gas line still not fixed.
Nov 2004 -- No OTR notice to me.Washington Gas line still not fixed.
Dec 2004 -- No OTR notice to me.Washington Gas fixes gas service line.
Jan 2005 -- No OTR notice to me. Cash reserves depleted.
Feb 2005 -- No OTR notice to me.
Mar 2005 -- No OTR notice to me.
Apr 2005 -- No OTR notice to me.
May 2005 -- No OTR notice to me.
June 2005 -- OTR sends me letter about retroactive vacancy.
mid-June 2005 -- I file exemption based on utility costs and explain lengthy and expensive gas service line repair.
late-June 2005 -- I phone OTR. OTR tells me I have been removed from vacancy list. I am no longer listed online in vacancy list.
July 2005 -- I doublecheck online vacancy list, I am back on the online vacancy list. Try to get OTR call back.
August 2005--I get letter from DCRA that bakery is considered vacant.
late-August 2005 -- Try to get OTR call back. DCRA grants me 60 days to get certificate of occupancy.
September 2005 -- OTR denies exemption. I pay for certificate of occupancy at DCRA and schedule inspections.
October 2005 -- New tax year begins, OTR imposes quadruple taxes on bakery.

[Mark]

I will ask again for contacts inside OTR that concerned residents might use.

[Ken Rubotzky]

As of today, OTR stands by its decision that the bakery is vacant.

[Joseph Martin]

ALLOW ME TO NOTE THAT KEN RUBOTSKY'S BAKERY SAGA IS NOT YET SETTLED. WE MAY NEED YOUR HELP AGAIN. STAY TUNED, PLEASE.

In the meantime, I think it's best we move the public safety issue discussions to the 4D-Neighbors site.

In essence, I don't want to draw attention away from Ken's needing our ongoing help and support as he proceeds. Given the bureaucracy, he may need our help some more, and I want to make that clear.

To comment on 4D-Neighbors, you will need to "subscribe." It costs nothing, as you may know. Send an email to:
[email protected]
or go to the web address listed under my name.

Thanks.

Joseph Martin
http://groups.yahoo.com/group/4D-Neighbors
202-309-1817 cell

[Joseph Martin]

I am now able to get the hard data on how many people in our neighborhood call 311/911 or 727-1000.

I've said this before. The complaints I hear as an ANC commissioner are frequent about any particular problem. I do my homework and find that NO ONE HAS CALLED or maybe one, or maybe two people...when several complain.

There have been two recent examples where groups of us together made a difference: Ken Rubotsky's bakery and the arrest two weeks ago of a signficant drug dealer on the 600 block of Emerson St NW.

In the latter, several neighbors came forward and gave the US Attorney's Office crucial information that lead to the arrest of a guy who, according to reports, with others in his crowd, has been openly threatening residents. They fought back. In addition to the drugs in his car, MPD found 25 rounds on ammunition and a .40 caliber pistol. Sgt. James Black called me as MPD was about to descend on the block. At that very moment I put him in touch by cell phone with a resident who had key information. The arrest was made. Kathleen O'Connor, the Assistant US Attorney, spent days collecting additional information from residents. Their assistance made all the difference in the world.

That story is to be continued. The man's trial starts Monday, if my understanding is correct.

The evidence is clear: If we join hands, get involved, are willing to speak up, demand changes, we can move the ball forward.

No calls and emails mean: we love the status quo.

The decision is ours.

Joseph Martin
ANC 4C09 Commissioner
Petworth
202-309-1817 cell
http://groups.yahoo.com/group/anc4c09
http://groups.yahoo.com/group/4D-Neighbors Public Safety Group

[mjbrox]

Well it looks like the squeaky wheel is getting the grease, and very quickly I might add.

I think there are a couple of things to note here.

First, It is not that hard to be squeaky. All you have to do is write a couple of emails and make a couple of phone calls. If 5-10 people do that, then it seems to get attention very quickly.

Second, We need to squeak much more often, specifically by calling 911/311. This also means talking to your neighbors about the importance of 911/311.

Third, We can not wait for the DC government to improve our neighborhood. The best we can hope from the city is that they will not impede development such as this bakery. So that means that we need to look into things like grants for existing businesses to make improvements and then help those businesses get the grants.