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Watergate complex

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Società Generale Immobiliare ( SGI ; English: The General Company of Real Estate ) was once the largest real estate and construction company in Italy. It was founded in Turin in 1862, then relocated to Rome in 1870 with the unification of Italy . The company bought some of the pastoral land around Rome and, with the growth of Rome, the company grew as real estate prices increased. The company's activities evolved into construction. Aldo Samaritani (1904–96) joined the company in 1933 and helped develop the company's construction activities. The company is famous for building residential buildings throughout Italy.

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108-622: The Watergate complex is a group of six buildings in the Foggy Bottom neighborhood of Washington, D.C. , United States. It is a primarily a development of residences in cooperative ownership , includes a hotel, and has one office building that in the 1970s led to its fame or infamy. Covering a total of 10 acres (4 ha) just north of the John F. Kennedy Center for the Performing Arts , the buildings include: Built between 1963 and 1971,

216-506: A Safeway supermarket, a Peoples Drug (now known as CVS pharmacy ), beauty salon, barber shop, bank, bakery, liquor store, florist, dry cleaner, post office, upscale shops, and high-end restaurant took up residency in the retail space on the ground floor. Riverview Realty was the leasing agent for the complex. Construction began on the second building, the 11-story office building and hotel, in February 1965. Both opened on March 30, 1967;

324-656: A neighborhood of Washington, D.C. , United States , located in the city's northwest quadrant. It stretches west of the White House towards the Potomac River , north of the National Mall , east of Georgetown , south of the West End neighborhood and west of Downtown D.C . The neighborhood is best known for hosting the headquarters of the U.S. Department of State , for which the name "Foggy Bottom"

432-651: A 50% stake in the Paramount lot to SGI. SGI is the predecessor of Group SGI which was controlled by Opus Dei during the early 1990s. The company was involved in the Banco Ambrosiano scandal. A possible reference to SGI, by the name of "Internazionale Immobiliare", is featured in The Godfather Part III as part of the protagonist Michael Corleone 's efforts to legitimize his fortune. This Italian corporation or company article

540-693: A German community was founded by many German immigrants. In 1768, Funk sold two lots of territory to both the German Lutheran and the German Presbyterian communities. The lot that was sold to the German Lutherans was located on the corner of 20th and G Street. The lot sold to the German Presbyterians was located on the southeast corner of 22nd and G Street. The Lutheran lot would not be in use until 1833 and

648-675: A bid in October 2009 to buy the hotel back. Monument was outbid by developer Robert Holland and the Jumeirah Group (a luxury hotel chain based in Dubai ), but the deal collapsed in November 2009 when financing fell through. Euro Capital Properties purchased the hotel in May 2010 for $ 45 million, with plans to rehabilitate it over the next two years. Foggy Bottom Foggy Bottom is

756-881: A division of SGI. In 1969, the Vatican sold its interest in SGI and no longer was part-owner of the Watergate. Although the Watergate was considered one of the most glamorous residences in the city, as early as 1970 residents and businesses complained of substandard construction, including a leaking roof and poor plumbing and wiring. The three Watergate Apartment buildings have a total of about 600 residential units. Notable occupants over time have included: Alfred S. Bloomingdale , Arthur F. Burns , Anna Chennault , Bob and Elizabeth Dole (Watergate South), Plácido Domingo , Ruth Bader Ginsburg (Watergate South), Alan Greenspan , Monica Lewinsky (she stayed briefly at her mother's apartment in

864-500: A floating performance stage on the Potomac River was anchored to the base of the steps. It was the site for open-air concerts and the audience could sit on the stairs. Up to 12,000 people would sit on the steps and surrounding grass to listen to symphonies, military bands, and operas. The barge concerts ended in 1965 when jet airliner service began at National Airport and the noise impaired the venue's viability. The music venue

972-580: A magnet high school, on the GWU campus. 38°53′54″N 77°02′56″W  /  38.89833°N 77.04889°W  / 38.89833; -77.04889 Societ%C3%A0 Generale Immobiliare SGI's largest shareholder was formerly the Vatican , with 15% of the shares. Most of the Vatican's holdings in the company were sold during the late 1960s to the Gulf and Western corporation. In 1970, Gulf and Western sold

1080-637: A month in security, heating, electricity, water, and other costs. Lehman Brothers, Monument Realty's financing partner, went bankrupt in 2008 and Monument was forced to attempt to sell the property. No buyer emerged and the Blackstone Group regained ownership of the hotel. The Blackstone Group transferred the Watergate Hotel to its Trizec Properties subsidiary. Trizec did not pay the hotel's property taxes for 2008 (which amounted to $ 250,000), and estimated that it would take $ 100 million to make

1188-439: A month. These prices fluctuated often because of the available jobs and the condition of the houses. Older houses were typically cheaper than new homes, only some of which came with running water, gas heaters or cooling systems. Statistics suggest that, on average, the greater wealth arose from the majority of white residents, but also that black wealth was steadily increasing due to new job patterns. In 1856, construction began on

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1296-597: A new wave of lower-class workers who flocked to the alleys to set up bootleg liquor stores. During this time, the German and the Irish immigrants that had been prevalent since the 1860s began to move out. In 1934, after conditions in the alley had deteriorated, the government created the Alley Dwelling Authority , a new government entity that specifically dealt with improving Washington D.C.’s alleys. The ADA

1404-434: A restaurant opened in a retail space named "Les Champs". The total cost of the project was $ 78 million. The Watergate's initial reception was poor, but the complex soon became recognized as one of D.C.'s finest examples of modern architecture. When models of the Watergate were unveiled in 1961, critics said the structure "would ruin the waterfront". Other critics denounced it as "nonconforming" and decried it as "Antipasto on

1512-506: A second protest was expected the following day, it never emerged and police spent the day drinking coffee and eating cookies and pastries baked at the Watergate East's pastry shop. The Watergate East tenants' cooperative refinanced its mortgage some time after 2000, and bought the land beneath its building. The Watergate Hotel and Office Building is one of the five buildings in the Watergate development. Management and ownership of

1620-420: A three-hour meeting with USCFA members. SGI agreed to shrink three of the planned buildings in the development to 13 stories (112 ft), with the remaining building rising to 130 feet (40 m). SGI also agreed to add more open space by reducing the size of the Watergate to 1.73 million square feet (161,000 m) from 1.911 million square feet (177,500 m) and by reorienting or re-siting some of

1728-906: Is DAR Constitution Hall . Foggy Bottom is also home to the original location of the United States Naval Observatory . The southern edge of Foggy Bottom is home to many federal government offices, including the State Department. The Main Interior Building (headquarters of the Department of the Interior ), the Bureau of Indian Affairs headquarters, and the Federal Reserve Board buildings all lie on or around Virginia Avenue . To

1836-602: Is commonly used as a metonym . It is also home to federal agencies and international institutions, including the Federal Reserve , the World Bank , and the International Monetary Fund ; the core of the neighborhood is occupied by George Washington University . Within greater Foggy Bottom, there is a four block Historic District with modest row houses and alleys dating from as early as

1944-527: Is served by: George Washington University (GWU) is located in Foggy Bottom. Public schools in Foggy Bottom are part of the District of Columbia Public Schools (DCPS) system. The neighborhood elementary and middle school located in Foggy Bottom is School Without Walls at Francis-Stevens . Residents are zoned for Cardozo Education Campus for high school. DCPS also operates School Without Walls ,

2052-488: Is thought to have received its name due to an atmospheric quirk of its low lying, marshy riverside location, which made it susceptible to concentrations of fog , and later, industrial smoke. The United States Department of State gained the metonym "Foggy Bottom" when it moved its headquarters to the Harry S Truman Building in 1947. Late into the 20th century, Foggy Bottom witnessed a drastic change in demographics. There

2160-463: Is true that the so-called 'curvilinear' design is at variance with most commercial architecture in Washington. But in our opinion the result, which places a premium on public open space and garden-like surroundings, and which proposes a quality of housing that would rank with the finest in the city, would be a distinct asset." The curving design has continued to draw praise. A noted 2006 guidebook to

2268-593: The Chicago Seven , political activists began planning and then advertising that a protest would occur at the home of United States Attorney General John N. Mitchell (who lived in the Watergate East). As expected, the verdict was handed down on February 18, 1970 (all the defendants were found not guilty of conspiracy but five were found guilty of incitement to riot). That night, more than 200 people rallied at D.C.'s All Souls Unitarian Church to prepare for

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2376-738: The Democratic National Committee leased office space in the building's retail office portion. The third building in the complex, Watergate South, opened in June 1968. It contained 260 residential units, more than any other building in the complex. Construction on the fourth building in the complex, the Watergate West apartments, began in July 1967. Apartments in the unfinished building, priced from $ 30,000 to $ 140,000, began selling in October 1967, an indication of how popular

2484-1054: The International Monetary Fund , the Office of Personnel Management , DAR Constitution Hall of the Daughters of the American Revolution , the American Pharmacists Association , the American Red Cross National Headquarters , the Pan American Health Organization , and the Organization of American States are all located in the neighborhood. In addition, the Mexican and Spanish embassies are located in Foggy Bottom, both on Pennsylvania Avenue . Foggy Bottom, along with

2592-495: The Washington Gas Light Company , which produced " manufactured gas " (a mixture of hydrogen, carbon monoxide, methane, and other flammable and nonflammable gases) for heating, cooking, and lighting throughout the city. Gas production ceased at the site in 1947, and the plant was demolished shortly thereafter. During the 1950s, the World Bank considered building its international headquarters here and on

2700-612: The moons of Mars (Phobos and Deimos) were discovered from the old Naval Observatory in Foggy Bottom, which was located here until 1893. Foggy Bottom became the site of the George Washington University 's 42-acre (17 ha) main campus in 1912. Foggy Bottom was also the name of a line of beer by the Olde Heurich Brewing Company , which was founded by German immigrant Christian Heurich 's grandson, Gary Heurich. He tried to revive

2808-560: The 'gate' that regulated the flow of water from the Potomac River into the Tidal Basin at flood tide." That gate (near the Jefferson Memorial ) is about 1.5 miles (2.4 km) downriver from the Watergate complex. Another namesake, the "Water Gate Inn" restaurant (1942–1966), operated on the site for more than two decades before the Watergate complex was built. In 2004, Washington Post writer John Kelly argued that

2916-423: The 140-foot (43 m) limit if they were set back from the edge of the building and the 14th floor was foregone. With these adjustments, the total cost of the first apartment complex (excluding plumbing, electricity, and decoration) was estimated at $ 12,184,376. Construction proceeded. The foundation and basement of the first building, the 110-foot (34 m) Watergate East, were completed by September 1964, and

3024-408: The 1870s and housed working class Irish, German and African Americans during the historic period of 1860-1915. The Foggy Bottom area was the site of one of the earliest European settlements in what is now Washington, D.C. , when German settler Jacob Funk (or Funck) subdivided 130 acres (0.53 km ) near the meeting place of the Potomac River and Rock Creek in 1763. The settlement officially

3132-433: The 25 percent of the hotel not sold to Blackstone) argued that a hotel would better enhance the livability of the area and challenged the conversion in court. The hotel closed on August 1, 2007, for a $ 170 million 18-month renovation, during which the hotel rooms were intended to be roughly doubled in size to 650 square feet (60 m). But the renovation never occurred, and the building sat empty—consuming $ 100,000 to $ 150,000

3240-584: The District of Columbia Zoning Commission (DCZC), and the United States Commission of Fine Arts (USCFA) (which had approval authority over any buildings built on the Potomac River to ensure that they fit aesthetically with their surroundings). In December 1961, 14 months after the project was publicly announced, the NCPC voiced its concern that the project's 16-story buildings would overshadow

3348-466: The District of Columbia Zoning Commission. By the time the DCZC met to consider approval in mid-April 1962, the cost of the project had been scaled back to $ 50 million. Because the District of Columbia lacked home rule , DCZC planners were reluctant to act without coordinating with agencies of the federal government. Additionally, many civic leaders, architects, business people , and city planners opposed

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3456-704: The Foggy Bottom neighborhood is preserved and listed on the National Register of Historic Places . Just south of the Watergate complex, on the Potomac River , lies the John F. Kennedy Center for the Performing Arts , home of the National Symphony Orchestra and numerous other theatrical and musical exhibitions. On Virginia Avenue is the Simon Bolivar Memorial. George Washington University's Lisner Auditorium and Smith Center are frequently home to major concerts, as

3564-627: The Kennedy Center, its advocates began agitating to lower the planned height of the final Watergate building. The general counsel for the Kennedy Center told the USCFA that the Watergate Town (the development had dropped the "e") was planning a 170-foot (52 m) building that would harm the aesthetics of the Kennedy Center and intrude on its park-like surroundings. The Watergate's attorneys responded that their building would stay within

3672-601: The Lincoln Memorial and the proposed "National Cultural Center" (later to be called the John F. Kennedy Center for Performing Arts). At the time, the District of Columbia had a 90-foot (27 m) height limit on all buildings except for those located exclusively along business streets. To obtain a height waiver, SGI would have to include retail office space in the complex, but the site was then zoned only for apartment buildings. Thus, initial approval first had to be won from

3780-430: The NCPC approved the Watergate plan. With the support of the NCPC, SGI dug in its heels: It declared it was not interested in developing the unsightly, abandoned commercial site unless its basic curvilinear design (now called "Watergate Towne") was approved, and it lobbied DCZC commissioners in late May, lecturing them on the District's architectural heritage and the beauty of modern architecture. SGI officials also lobbied

3888-539: The Potomac River, Virginia skyline, and monuments. Many residents later said the flowing lines reminded them of a graceful ship. In 1970, as the Watergate was nearing completion, SGI proposed building a "Watergate II" apartment, hotel, and office complex on the waterfront in Alexandria, Virginia , several miles down the Potomac River from the original Watergate. Although the project initially received support from Alexandria city officials and business people, residents of

3996-499: The Potomac". As noted above, many individuals also felt the complex blocked views of the Potomac River, tended to overshadow nearby monuments and other buildings, and consumed too much open space. Some residents even felt the construction of the units was substandard. Architectural critics called the detailing "clunky". The Washington Star newspaper, however, was an early proponent of the Watergate. In May 1962, it editorialized: "It

4104-606: The Presbyterian until the 1880s. The lot that was sold to the German Lutheran community was turned into the Concordia German Church . By the 19th century, Foggy Bottom became a community of laborers employed at the nearby breweries , glass plants, and city gas works. These industrial facilities are also cited as a possible reason for the neighborhood's name, the "fog" being the smoke given off by

4212-596: The USCFA. Meanwhile, White House staff made it known that the Kennedy administration wanted the height of the complex lowered to 90 feet (27 m). Three key staff were opposed to the project on height grounds: Arthur M. Schlesinger, Jr. , Special Assistant to the President; August Heckscher III, Special Consultant on the Arts; and William Walton, a Kennedy family confidant. The three briefed President John F. Kennedy on

4320-563: The United States and elsewhere, in places that do not have English as the main language. The complex sits near the eastern terminus of the Chesapeake and Ohio Canal , which operated from 1831 to 1924 and is now a National Historical Park . The remains of the gravity dam across Rock Creek , as well as Waste Weir #1 are at this site. Land once owned by the canal company was part of the 10-acre (4.0 ha) site purchased in 1960 by

4428-523: The Watergate Hotel welcomed its first guests the same day. The 12-story hotel initially included 213 rooms, while the 12-story office building, attached to the hotel by a colonnade , had 200,000 square feet (19,000 m) of office space. The combined hotel/office building included a health club, space on the ground floor for shops, and a restaurant, the Roman Terrace, on the top floor. Later in April,

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4536-485: The Watergate became one of the most desirable living spaces in Washington, D.C. , popular with members of Congress and political appointees of the executive branch . The complex has been sold several times since the 1980s. During the 1990s, it was subdivided and its component buildings and parts of buildings were sold to various owners. In 1972, the headquarters of the Democratic National Committee , then located on

4644-563: The West Station Works attracted laborers to the area, most of them unskilled. By 1860, the unskilled population in Foggy Bottom was at 42%, compared to 9% in 1850. The influx of people spurred development in the area, and 40 years after the works were completed, the area fit the description of a proper city. In 1948, the area of land occupied by the West Station Works was purchased by the Watergate Project. The plant

4752-549: The West Station Works, a plant owned and operated by the Washington Gas Light corporation, at the intersections of 26th and G St. NW. The construction began the development of the area now occupied by the Watergate complex and throughout broader Foggy Bottom. The location was chosen for its proximity to the Potomac River , which made it convenient to unload barges of coal for the plant. The daily operation of

4860-519: The White House. But the group's attempt to stop construction failed, and the project went forward. The project won its $ 44 million financial backing in late 1962, and its construction permits in May 1963. Construction began on the first building, the Watergate East apartment, in August 1963. The builder was Magazine Bros. Construction. Groundbreaking occurred in August 1963, and major excavation work

4968-491: The Zoning Commission did on November 30, 1967. Although it appeared that SGI was winning the legal battle over the fifth building, D.C. city planners attempted to mediate the dispute between the Kennedy Center and the Watergate and achieve a contractual rather than legal solution. Three separate proposals were made to both sides on December 7, 1967. On April 22, 1968, SGI agreed to turn its fifth building slightly to

5076-505: The adjacent site (which now houses the Kennedy Center), but rejected the site for unspecified reasons. It constructed its headquarters at its current location at 1818 H Street NW in Washington, D.C. The name "Watergate" relates to numerous aspects of its physical and historical context. The name "Watergate" and the suffix " -gate " have since become synonymous with and applied by journalists to controversial topics and scandals in

5184-454: The agreed-upon 140-foot (43 m) height. The disagreement continued for nearly two years, delaying the planned fall 1967 start to construction. Watergate apartment residents such as Senator Wayne Morse lobbied the USFCA, DCZC, and NCPC to force SGI to accede to the Kennedy Center's wishes. In November 1967, the USCFA reaffirmed its approval of the Watergate project. When the DCZC appeared on

5292-442: The authority to legislation for approval. Individual legislators included, but not exclusively, Eleanor Roosevelt . Common reasons given for why an area was in need of renovation were: too many people in one home; too many African Americans in and around the area; or that the exterior paint had faded. After the ADA gained approval from legislation, it would then give the occupants of the houses anywhere from two to four months to vacate

5400-404: The brewery buildings were razed to make way for the John F. Kennedy Center for the Performing Arts . Heurich Jr., and his two sisters donated a portion of the brewery land to the Kennedy Center in memory of their parents, and established the Christian Heurich Family as one of the Founders of the national cultural center. Although the firm was founded in the Foggy Bottom neighborhood, the modern beer

5508-399: The building for nonprofit and professional use only. The fifth building was completed in January 1971. Its first tenant was the Insurance Institute for Highway Safety, which secured occupancy in February 1971, and its first major tenant was the Manpower Evaluation and Development Institute, which leased the entire eighth floor. In October 1972, several high-end fashion boutiques, jewelers, and

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5616-462: The building met the May 1962 agreement stipulations. On January 10, 1963, SGI and the USCFA agreed that the height of the complex would not exceed 140 feet (43 m) above water level (10 inches below that of the nearby Lincoln Memorial), that fewer than 300 apartment units would be built (to reduce population congestion), and to eliminate the proposed luxury villas (to create more open space). Luxury penthouse apartments, however, could extend above

5724-405: The building. By July 1, 1944, all of the houses in Foggy Bottom had been evacuated and plans were set forward for renovation. This act sought to produce larger living spaces for individuals with better conditions so that the owners could charge more for rent. Higher rent prices were acceptable at the time because of a boom in hiring. Rents usually ranged anywhere from seventeen to thirty-seven dollars

5832-443: The buildings. The USCFA gave its assent to the revised construction plan on May 28, the White House withdrew its objections, and the DCZC gave its final approval on July 13. The final plan broke one building into two, creating five rather than four construction projects. Moretti later admitted he probably would have lowered the height of the buildings anyway, and thought that the approval process had gone relatively smoothly. Construction

5940-442: The chief architect, and Milton Fischer of the D.C.-based firm of Corning, Moore, Elmore and Fischer the associate architect. The apartment buildings included two-story units on the first and second floors, while the top-floor units had private rooftop terraces and fireplaces . The design for the entire complex also envisioned an electronic security system so extensive that the press claimed "intruders will have difficulty getting onto

6048-548: The city (particularly those in the downtown area, near federal buildings and monuments) must pass through an extensive, complex, and time-consuming approval process. The approval process for the Watergate complex had five stages. The first stage considered the proposed project as a whole as well as the first proposed building. The remaining four stages considered the four remaining proposed buildings in turn. At each stage, three separate planning bodies were required to give their approval: The National Capital Planning Commission (NCPC),

6156-435: The city's Old Town strongly objected. The project stalled for two years due to protests from residents and a land dispute regarding title to the waterfront land on which the project was to be sited. The Watergate II project was eventually abandoned in favor of a much larger complex near Landmark Mall in Alexandria (a site nowhere near water). The entire Watergate complex was initially owned by Watergate Improvements, Inc.,

6264-408: The city's architecture concluded that the Watergate brought a "welcome fluidity" to the city's boxy look. Others praised the complex's internal public spaces. When the Watergate East opened in 1965, The Washington Post called these areas opulent and evocative of the best in Italian design. The New York Times characterized the design as "sweeping", and complimented each building's spectacular views of

6372-417: The complex opened. So many members of the Nixon administration settled there that the Washington, D.C., press commented on it and nicknamed it the "Republican Bastille". The complex enjoyed a renaissance during the early 1980s and became known as the "White House West" due to the large number of Reagan administration officials living there. The Watergate complex changed hands in the 1970s, and each building

6480-492: The complex was with District residents. The Watergate West topped out on August 16, 1968, at which point the cost of the project had risen to $ 70 million. Construction was completed in 1969. Controversy arose over the construction of the Watergate Office Building, the complex's fifth and final structure. Its original design called for a 140-foot (43 m) structure with the upper floors set back to create more space and light. But in June 1965, as excavation and clearing began for

6588-529: The complex), Senator Russell Long , Clare Boothe Luce (after 1983), Robert McNamara , John and Martha Mitchell , Paul O'Neill , Abraham Ribicoff , Condoleezza Rice , Mstislav Rostropovich , Maurice Stans , Ben Stein , Herbert Stein , John A. Volpe , John Warner and Elizabeth Taylor (during their marriage), Caspar Weinberger , Charles Z. Wick , and Rose Mary Woods . The Watergate's popularity among members of Congress and high-ranking executive branch political appointees has remained strong ever since

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6696-426: The complex, resulted in Nixon's resignation on August 9, 1974. The name "Watergate" and the suffix " -gate " have since become synonymous with and applied by journalists to controversial topics and scandals in the United States and elsewhere, even extending to contexts where English is not a major language. The Watergate area is bounded on the north by Virginia Avenue , on the east by New Hampshire Avenue , on

6804-400: The curved structures would also give apartment dwellers an excellent view of the Potomac River. Because of the curves in the structure, the Watergate complex was one of the first major construction projects in the United States in which computers played a significant role in the design work. Because the District of Columbia is the seat of the United States government, proposals for buildings in

6912-400: The development for $ 49 million. Two years later, Continental Illinois sold its interest to the National Coal Board Pension Fund in the U.K. Salgo did the same in 1986. The coal board pension fund put the Watergate complex up for sale in 1989, and estimated the complex's worth at between $ 70 million and $ 100 million. Several buildings were sold in the 1990s (for details, see below). The property

7020-421: The east lies the Eisenhower Executive Office Building , home to the Executive Office of the President of the United States and the Office of the Vice President of the United States . On the other side of the office is the White House , outside of the neighborhood. Foggy Bottom is also home to numerous international and American organizations. The World Bank buildings, the International Finance Corporation ,

7128-465: The first tenants moved in a few days later. Prices for the 238 cooperative apartment units ranged from $ 17,000 for efficiencies to more than $ 250,000 for penthouses, and were almost completely sold out by April 1967. The average apartment contained two bedrooms, two-and-a-half baths, a dining room, and a kitchen, and cost $ 60,000. Each parking space in the underground garage cost $ 3,000. The tenants took title to their building on April 8, 1966. In November,

7236-420: The grounds undetected." Boris V. Timchenko, a noted D.C.-based landscape architect , supervised the design of the grounds, which included more than 150 planters, tiers of fountains designed to create sounds like a waterfall, landscaped rooftop terraces, swimming pools, and a 7-acre (28,000 m) park. Landscape features such as planters would also be used to create privacy barriers between apartments. The complex

7344-402: The hotel for $ 39 million in July 1998. For a few years in the late 1990s and early 2000s (decade), the Watergate Hotel was operated by the Swissôtel hotel group. But the hotel underperformed other Swissôtel operations of similar size, location, and price. Jean-Louis Palladin 's eponymous restaurant in the building closed in 1996. The hotel subsequently underwent a renovation in 2000. Swissôtel

7452-429: The hotel habitable due to the stalled 2007 renovation. The hotel was put on the market in May 2009, but once again no buyer emerged. The hotel was auctioned off on July 21, 2009 (with the minimum bid beginning at $ 25 million), but there were no buyers and Deutsche Postbank , which held the $ 40 million mortgage on the property, took over ownership. The bank began marketing the property for sale, and Monument Realty submitted

7560-410: The hotel have changed several times since the mid-1980s. In 1986, Cunard Line , the cruise ship company, took over management of the hotel and began redecorating and refurbishing it. The British Coal Board pension fund sold the hotel portion of the building to a British-Japanese consortium in 1990 for $ 48 million. Blackstone Real Estate Advisors, the real estate affiliate of the Blackstone Group , bought

7668-451: The hotel/office building, and two office buildings. The entire development was listed on the National Register of Historic Places on October 21, 2005. The Watergate East apartment building is probably the second-best known of the five buildings in the development. It became the most sought-after living location in the city when it opened in 1966. Problems with the building's construction became apparent shortly after its occupancy. The roof

7776-537: The industries. Foggy Bottom attracted few settlers until the 1850s, when more industrial enterprises came into the area. Funk also set aside land in Hamburgh for a German-speaking congregation in 1768. Concordia German Evangelical Church, located at 1920 G Street NW was finally founded in 1833. Today the congregation is the United Church, and is the oldest religious community remaining in Foggy Bottom. In 1877

7884-414: The issue, but it was not clear who made the decision to request the height reduction or who made the request public. The White House announcement surprised many, and offended federal and city planners, who saw it as presidential interference in their activities. SGI's chief architect, Gábor Ács , and Watergate chief architect Luigi Moretti flew to New York City on May 17 and defended the complex's design in

7992-418: The mass protest demonstration the next day. On February 19, several hundred protestors gathered in front of the Watergate East and attempted to enter the building. Several hundred police, bused in to prevent the demonstration, engaged in street fighting with protestors, forced them to retreat, and eventually launched several tear gas canisters to disperse the crowd. More than 145 protesters were arrested. Although

8100-513: The metal and concrete superstructure rose in October. In September 1964, the Watergate's developers signed a first-of-its-kind agreement under which the Washington Gas Light Co. would provide the entire complex with its heating and air conditioning. The Watergate East was completed in May 1965, and a month later the first model apartment unit was opened to the public for viewing. The building formally opened on October 23, 1965, and

8208-430: The name Watergate in the surviving files of Societa Generale Immobiliare is a June 8, 1961, memorandum authored by Giuseppe Cecchi, summarizing an early meeting with officials of the future John F. Kennedy Center for the Performing Arts about the proposed project. In his 2009 book Presidential Power on Trial: From Watergate to All the President's Men, William Noble wrote that the Watergate "got its name from overlooking

8316-476: The name was most directly linked to the "Water Steps" or "Water Gate", a set of ceremonial stairs west of the Lincoln Memorial that led down to the Potomac. The steps had been originally planned as a ceremonial gateway to the city and an official reception area for dignitaries arriving in Washington, D.C., via water taxi from Virginia, though they never served this function. Instead, beginning in 1935,

8424-401: The nature of the final building. On August 8, 1968, SGI and the Kennedy Center reached a resolution, agreeing that only 25 percent of the fifth building's 1.7 million square feet (160,000 m) would be used as office space and that the remaining space would become apartment units. The NCPC approved the revised plan in November 1968, and the DCZC did so five weeks later, specifically zoning

8532-524: The original site to Societa Generale Immobiliare, acquired the name from Marjory Hendricks, owner of the Water Gate Inn; and three local executives—Giuseppe Cecchi, an employee of Societa Generale Immobiliare, Nicolas Salgo and Royce Ward—came up with the name, inspired in part by the Water Gate Inn, and recommended it to executives in the Rome office for approval. According to Rodota, the earliest use of

8640-405: The project before the DCZC because they feared it was too tall and too large. By the end of April, DCZC had announced that it would delay its decision. The Commission of Fine Arts also had concerns: it felt some of the land should be preserved as public space and objected to the height of the proposed buildings as well as their modern design. Three days after the DCZC meeting, the USCFA announced it

8748-425: The project's developer, Rome-based Società Generale Immobiliare (SGI). In his 2018 book The Watergate: Inside America's Most Infamous Address , author Joseph Rodota gave three accounts of the origin of the name, based on sources inside the development team: Author and playwright Warren Adler , while working as a publicist for the developers, came up with the name; Nicolas Salgo, a New York financier who suggested

8856-486: The rest of Washington D.C, was designed using the L'Enfant Plan , which created squares of housing with open space left in the middle. Foggy Bottom's alley life issue emerged during the 1860s when an influx of Irish and German immigrants attempted to move into Foggy Bottom. This influx was a result of the large number of industrial buildings that were located in Foggy Bottom. There were no immediate houses available for these new immigrants, so they were forced to move into

8964-498: The sixth floor of the Watergate Office Building, was burgled ; private campaign documents were photographed and telephones were wiretapped. The U.S. Senate investigation into the burglary revealed that high officials in the administration of President Richard Nixon had ordered the break-in and later tried to cover up their involvement. Additional crimes were also uncovered. The Watergate scandal , named after

9072-583: The south by F Street, and on the west by the Rock Creek and Potomac Parkway which is along the Potomac River. It is in the Foggy Bottom neighborhood, next to the Kennedy Center and the embassy of Saudi Arabia . The nearest Metro station, 0.4 miles (650 m) away, is Foggy Bottom–GWU station . For more than a century, the land now occupied by the Watergate complex belonged to the Gas Works of

9180-480: The southwest in order to open up the Watergate complex a little more and give the Kennedy Center a bit of open space. Although the Kennedy Center accepted the proposal, it demanded that the fifth building include apartment units, rather than be completely devoted to office space, to maintain the area's residential nature. The fight now moved to the NCPC. In June 1968, the NCPC held a hearing at which more than 150 Watergate apartment residents clashed with SGI officials over

9288-455: The time, it was also the largest renewal effort in the District of Columbia undertaken solely with private funds. Initially, the project was to cost $ 75 million and consist of six 16-story buildings comprising 1,400 apartment units, a 350-room hotel, office space, shops, 19 luxury "villas" ( townhouses ), and three-level underground parking for 1,250 vehicles. The Watergate's curved structures were designed to emulate two nearby elements. The first

9396-489: The tradition of his family's Christian Heurich Brewing Company, which had ceased production in Foggy Bottom. Christian Heurich Brewing Company's most successful products bore such local names as Senate and Old Georgetown. During the 1950s, Heurich Brewing also sponsored the city's professional baseball team, the Washington Senators . Industry consolidation led the brewery to cease operations in 1956. In 1961–1962,

9504-474: The turn of the 20th century, the government began relegating more responsibilities and authority to the Health Department, which began demolishing the alleys because of the copious amounts of crime and disease. The living conditions of the inhabitants were quite abysmal, with half of the population sharing or having no toilet facilities Furthermore, crime was a major problem; a section of Foggy Bottom

9612-481: The underground parking garage the cooperative claimed as its own, and demanded that the developer stop selling spaces in the residents' parking area. SGI filed a $ 4 million counterclaim alleging "malicious embarrassment" and five years later paid residents $ 600,000 to settle the cases. The Watergate East was also the site of a major protest in 1970. In the weeks before the jury verdict in the Chicago, Illinois, trial of

9720-479: The uninhabited alleys that were located in the middle of the squares. The situation became worse after the Civil War when a wave of newly freed Black Americans moved to Washington and began populating the alleys. Construction of the alleys continued until 1892 because the government needed to reduce overcrowding in residential areas. For the next decade, the government largely left the alleys untouched. However, at

9828-439: The verge of giving its approval as well, the Kennedy Center argued that the DCZC had no jurisdiction over the controversy. The DCZC disagreed, and re-asserted its jurisdiction. The Kennedy Center then argued that the DCZC had not properly considered its objections, and should delay its approval pending further hearings. The District's legal counsel disagreed, giving the DCZC the go-ahead to reaffirm (or not) its approval ruling, which

9936-654: Was a racial transformation within the area, as a white revival emerged. Many different factors forced out the black population, including the Foggy Bottom Taxpayers Protective Association opposing federal intervention. The renovations enacted by the Alley Dwelling Authority rendered the former inhabitants displaced. Similarly, the West End witnessed the same changes. Another factor of the change in demographics

10044-566: Was authorized to demolish or redevelop any alley if it was deemed to be worth saving or not. The addition of the ADA and the arrival of the Department of State began to improve the living conditions in the alleys over time. The ADA was given the task of evaluating homes and streets to see if they met proper living conditions. Specific documentation would state the reasons why the area needed to be renovated. This documentation would then be sent from

10152-561: Was brewed in Utica , New York . Points of interest in Foggy Bottom include the Kennedy Center for the Performing Arts , Friendship Lodge Odd Fellows Hall, and the Watergate complex , site of the Watergate scandal 's burglaries that led to President Richard Nixon 's resignation . George Washington University has grown significantly over the past decades and now covers much of the neighborhood, which has many historic old homes and numerous mid-rise apartment buildings. The historic portion of

10260-447: Was complete by May 1964. The U.S. Commission on Fine Arts attempted once more to revise the project. In October 1963, the USCFA alleged that the height of the Watergate complex, as measured from the parkway in front of it, would exceed the agreed-upon height restrictions. SGI officials, however, contended that architects are required by law to measure from the highest point on the property on which they are to build; using this measurement,

10368-401: Was demolished, and the Watergate complex was constructed on the same plot of land. Today, there is no physical remnant of the plant. It is a historical location today. It is bounded roughly by 17th Street NW to the east, the Potomac River and Rock Creek Parkway to the west, Constitution Avenue and the National Mall to the south, and Pennsylvania Avenue NW to the north. Foggy Bottom

10476-512: Was depicted in scenes in the motion pictures Houseboat (1958) and Born Yesterday (1950). The Watergate complex was developed by the Italian firm SGI. The company purchased the 10 acres (40,000 m) that belonged to the defunct Chesapeake and Ohio Canal in February 1960 for $ 10 million. The project was announced on October 21, 1960. Luigi Moretti of the University of Rome was

10584-471: Was expected to begin in spring 1963 and last five years. The Watergate project faced one final controversy. The group Protestants and Other Americans United for Separation of Church and State began a national letter-writing campaign opposing the project, alleging that the zoning waivers would not have been given had the Vatican not been a major investor in SGI. By mid-November 1962, more than 2,000 protest letters had been sent to Congress and another 1,500 to

10692-462: Was leaking by 1968. The Washington Post published reports in October 1968 that SGI refused to fix the leaks unless residents dropped their opposition to the construction of the complex's fifth building. By 1970, problems at Watergate East led the press to dub the building the "Potomac Titanic", and its residents filed suit against the developer in 1971 to correct the structure's problems. Another lawsuit, filed in February 1970, sought exclusive access to

10800-417: Was named Hamburgh , but colloquially was called Funkstown . In 1765, German settlers established the town of Hamburg on what would become the area between 24th and 18th NW Street. There are reportedly two more founders: Robert Peter and James Linigan. The three had control of the land until 1791 when the territories were given to the city of Washington and the United States government. In the town of Hamburg,

10908-437: Was nicknamed "Round Tops" because of a well-known gang that was active in the area. The following decades showed an improvement in the overall living conditions in the alleys of Foggy Bottom. The Health Department's effort to reduce crime and overcrowding largely succeeded until the 1920s, when prohibition began being enforced. Because breweries were a major source of income for the inhabitants of Foggy Bottom, prohibition created

11016-427: Was orchestrated by Democratic Senator Theodore G. Bilbo , who called for an "Alley Moving Day" forcing the black population out of the alleys. The neighborhood is predominately white and has a large number of off-campus university student residents that affect demographics on income, age and race. As of the 2010 United States Census , there are 14,642 residents, of whom 78.3% are white. The Foggy Bottom neighborhood

11124-413: Was purchased by Raffles Hotels and Resorts , and Raffles' management contract ended in May 2002. Blackstone began managing the hotel, and put it up for sale in the fall of 2002 (with an asking price of $ 50 million to $ 68 million). Monument Realty bought the hotel for $ 45 million in 2004 and planned to turn it into luxury apartment co-ops. But many residents in other parts of the complex (some of whom owned

11232-554: Was putting a "hold" on the Watergate development until its concerns were addressed. To counter this resistance, SGI officials met with members of the USCFA in New York City in April 1962 and defended the complex's design. SGI also reduced the planned height of the Watergate to 14 stories from 16. In May 1962, the NCPC reviewed the project. Additional revisions in the design plan pushed the cost back up to $ 65 million, even though only 17 villas were now planned. Based on this proposal,

11340-480: Was sold off separately in the 1990s and 2000s (decade) (see below). Strict lease agreements, however, have kept the apartment buildings in residents' hands: In the Watergate South, for example, owners cannot rent their unit until a full year has passed, and no lease may last more than two years. In 1977, one of the Watergate's financiers (Nicholas Salgo) and Continental Illinois Properties bought SGI's stake in

11448-514: Was the first mixed-use development in the District of Columbia, and was intended to help define the area as a business and residential rather than industrial district. The Watergate complex was intended to be a "city within a city", and provide so many amenities that residents would not need to leave. Among these were a 24-hour receptionist, room service provided by the Watergate Hotel, health club, restaurants, shopping mall, medical and dental offices, grocery, pharmacy, post office, and liquor store. At

11556-403: Was the proposed Inner Loop Expressway , a curving freeway expected to be built just in front of the Watergate within the next decade. The second was the nearby Kennedy Center, then in the planning stage and whose original design was supposed to be curvilinear. Although the Kennedy Center later adopted a rectangular shape for cost reasons, the Watergate complex's design did not change. Incidentally,

11664-433: Was valued at $ 278 million in 1991. Efficiency units in that year sold for $ 95,000, while penthouse apartments went for $ 1 million or more. Various buildings were sold again in the early 2000s (decade). In 2005, all of the retail space in the complex was put up for sale. Little redevelopment of the site has occurred in the 40 years since the Watergate was first built. The complex still includes three luxury apartment buildings,

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