District of Columbia
Town nightclub sues landlord to terminate lease for church building
LGBTQ club says subsidiary of Douglas Development failed to renovate building
Town 2.0, the company that planned to reopen the popular D.C. LGBTQ nightclub Town in a former church on North Capitol Street, filed a lawsuit against the buildingās owner on April 2, accusing the owner, Jemalās Sanctuary LLC, of failing to upgrade the more than 100-year-old building more than four years after it signed a lease for the building.
Jemalās Sanctuary is a subsidiary of the Douglas Development Corporation, one of the cityās largest real estate development firms. The company purchased the building that was once Saint Phillips Baptist Church at 1001 North Capitol St., N.E., about a half mile north of the U.S. Capitol, in 2017 after the church moved its congregation to Maryland.
What was initially known as Town Danceboutique operated from 2007 to 2018 in a large, converted warehouse building on 8th Street, N.W. just off Florida Avenue. It closed when the buildingās owner sold it to a developer who has since built a condo apartment building in its place.
In 2019, the Town owners announced plans to reopen what they called Town 2.0 in the church building on North Capitol Street in a lease agreement before the building was to be renovated mostly by its owner, with Town providing some interior renovations.
In its lawsuit filed in D.C. Superior Court, Town 2.0 calls for the termination of the lease and at least $450,000 in damages on grounds that Jemalās Sanctuary violated the terms of the lease by failing to complete required renovation work on the building that was required to be completed by a Sept. 1, 2020 ādelivery date.ā
Among the work the lawsuit says Jemalās Sanctuary failed to carry out is repairing and maintaining antique stained-glass windows; roof replacement and related structural repairs; re-pointing of the buildingās brick walls; repair and replace cornices, chimney, and exterior stairs; and ensuring the āstructural integrity of walls, foundation, and roof.ā
āAccording to the agreed-upon terms of the lease, Jemalās Sanctuary was obligated to perform critical life safety structural work and other work on the premises,ā a statement released by a spokesperson for Town 2.0 says. āHowever, after more than four and one-half years past the signing of the lease on September 9, 2019, Jamalās Sanctuary has failed to fulfill its obligations, including but not limited to performing specific āLandlord Workā required by the lease,ā the statement says.
āBusiness partners John Guggenmos, Ed Bailey, and Jim Boyle are experienced entrepreneurs in the nightlife and entertainment industry and have a proven record of successfully owning and operating venues catering to the LGBTQIA community in the District of Columbia since 1990,ā the statement says. āThe establishment of Town 2.0 was envisioned as a culmination of their illustrious careers,ā it says.
A spokesperson for Jemalās Sanctuary LLC couldnāt immediately be reached for comment. The company is expected to file an official response to the lawsuit in court.
District of Columbia
D.C. Mayorās Office of LGBTQ Affairs moving to new location
LGBTQ community center also set to leave Reeves Center
D.C. Mayor Muriel Bowserās Office of LGBTQ Affairs, which is currently located at the cityās Reeves Center municipal building at 14th and U Street, N.W., was scheduled to move during the week of Dec. 9 to a new location at 899 North Capitol St., N.E., according to Japer Bowles, the officeās director.
Bowles said the LGBTQ Affairs office will be located on the seventh floor of the privately owned office building in which the city has rented space for several other city agencies, including the D.C. Department of Health.
The move comes about amid longstanding plans to demolish the Reeves Center and replace it with a redevelopment project that will include a mix of housing, office space, a hotel, and retail stores along with a public plaza and a 200-seat amphitheater.
The D.C. LGBTQ+ Community Center, which has been located in the Reeves Center for about 10 years, also expects to be moving out of the building in the spring of 2025, said Kimberley Bush, the LGBTQ centerās executive director.
Bush said the LGBTQ center looks forward to moving into its new, larger space in a building at 1827 Wiltberger St., N.W. in the cityās Shaw neighborhood, which is located one block away from the Shaw-Howard University Metro station.
The LGBTQ center entered a joint lease to rent space in the Wiltberger Street building with the Capital Pride Alliance, the group that organizes most of D.C.ās LGBTQ Pride events, including the upcoming World Pride 2025 events set to take place in D.C. May 17-June 8.
In response to a request by Bowser, the D.C. Council earlier this year approved $1 million in funding for fiscal year 2025 to support the build-out and construction of the LGBTQ Centerās space in the Wiltberger Streetās converted warehouse building.
But shortly after the Council approved that funding, the D.C. Center and Capital Pride Alliance announced the launch of a fundraising campaign called āWelcome Home ā Building Together, Thriving Togetherā to raise an additional $1.5 million needed to complete the renovation of the new building.
āThis endeavor is more than just the construction of a building; it represents a commitment to carve out a generous 7,000 square feet of space devoted to nurturing unity, empowerment, and support across the LGBTQ+ spectrum,ā a statement announcing the fundraising campaign says.
District of Columbia
D.C. LGBTQ community to gather for post-election dialogue
Dec. 12 event to address federal workersā rights, immigration, more
Several leading LGBTQ organizations in D.C. are coming together to make sense of the recent election and to discuss the future of advocacy and resilience as President-elect Donald Trump prepares to take office.
With Republicans in firm control of the federal government after winning majorities in the House and Senate, many are concerned about attacks on the LGBTQ community, including Trumpās pledge to ban trans people from serving in the military. In addition, many LGBTQ federal workers have expressed concerns about being targeted for reassignment or termination, as outlined in Project 2025, a right-wing blueprint for Trumpās second term.
In response, D.C.ās LGBTQ community is coming together for an event on Thursday, Dec. 12, 6:30-8 p.m. at the Eaton Hotel (1201 K. St., N.W.) featuring an array of speakers who will address issues, including: anticipated policy shifts; community resilience strategies; legal rights; immigration advocacy; and federal workersā rights.
The event, titled, āCharting Our Future: LGBTQ+ Advocacy & Resilience in a Changing Landscapeā is free; visit washingtonblade.com/future to RSVP.
The event is being hosted by the Washington Blade and includes community partners: the DC LGBTQ+ Budget Coalition, HME Consulting & Advocacy, Eaton DC, DC LGBTQ+ Community Center, Capital Pride Alliance, and the Mayor’s Office of LGBTQ+ Affairs. Heidi Ellis of the DC LGBTQ+ Budget Coalition will moderate. A list of speakers will be released later this week.
District of Columbia
Casa Ruby receiver files for bankruptcy
Jan. 21 deadline set for creditors, former employees to apply for reimbursement
In a little-noticed development, the Wanda Alston Foundation, which assumed control over the operations of the D.C. LGBTQ community services group Casa Ruby in August 2022 under a court-appointed receivership role, filed a petition on Aug. 27 of this year to place Casa Ruby in bankruptcy.
The petition, filed in the U.S. Bankruptcy Court for the District of Columbia, says Casa Ruby has estimated liabilities to at least 50 creditors of more than $1 million and estimated assets of between $0 and $50,000.
Nick Harrison, an attorney representing the Wanda Alston Foundation, which provides housing services to homeless LGBTQ youth, said Casa Ruby currently has no known financial assets, including cash.
He said the bankruptcy petitionās estimated assets of up to $50,000 are based on a pending lawsuit that the Alston Foundation filed against eight former Casa Ruby board members and Casa Rubyās founder and former executive director Ruby Corado in December 2022. The lawsuit accuses the board of violating D.C.ās nonprofit corporation law by failing to exercise oversight over Casa Rubyās operations that led to its financial collapse and shutdown in 2022.
The lawsuit calls on the court to require Corado and the former board members to pay ārestitution, compensatory damages, punitive damages, receivership fees and expenses, court costs, attorneysā fees, and expenses, and any other relief the court deems necessary and proper.ā
A D.C. Superior Court judge on May 1, 2023, dismissed the lawsuit filed by the Alston Foundation against all but one of the former Casa Ruby board members but did not dismiss the case against Corado.
The Alston Foundation has appealed the ruling dismissing the lawsuit, and the case is now pending before the D.C. Court of Appeals.
The lawsuit also alleges that the board failed to adequately oversee the actions of Corado, who pleaded guilty in July of this year to a charge of wire fraud as part of a plea bargain deal offered by prosecutors.
The charge to which Corado pleaded guilty in the U.S. District Court for D.C. says she allegedly diverted at least $150,000 āin taxpayer-backed emergency COVID relief fundsā awarded to Casa Ruby to āprivate offshore bank accounts for her personal use,ā according to a statement released by the U.S. Attorneyās office.
Corado, who initially denied the allegations against her, is currently staying with a family member in Rockville, Md., in a home detention arrangement following her arrest by the FBI on March 5 of this year. She is scheduled to be sentenced on Jan. 10.
D.C. Superior Court Judge Danya A. Dayson stated that her decision to dismiss the lawsuit against seven of the eight former board members was based on her interpretation of D.C. law. She said she believes the law holds that members of an organizationās board of directors can only be held liable for harming an organization like Casa Ruby if they āintentionally, rather than negligently, inflicted harm on Casa Ruby.ā
The judge said she did not dismiss the case against one of the board members because the lawsuit presents evidence that the board member received some financial benefits from Corado.
In a legal brief filed with the appeals court, the Alston Foundation attorneys state that evidence shows the Casa Ruby board members āwere deliberately indifferent or āwillfully blindā to the alleged wrongful conduct of the nonprofitās executive director amounting to actual knowledge on their part that inaction would harm the nonprofit, ultimately and forcibly leading to its financial inability to continue operation.ā
The former board members have declined requests for comment on the lawsuit.
Harrison, the attorney representing the Alston Foundation in the bankruptcy filing, said anyone who is owed money by Casa Ruby has until Jan. 21 to file a āproof of claimā form with the bankruptcy court to be eligible to be compensated if funds become available.
At the time of Casa Rubyās shutdown, the organizationās employees were among those who said they were not paid in the months or weeks prior to the shutdown.
Asked what prompted the Alston Foundation to file the bankruptcy petition on behalf of Casa Ruby, Harris said, “Filing the bankruptcy petition ensures that a trustee with the appropriate expertise can wrap up the remaining issues while allowing the Wanda Alston Foundation to stay focused on its core mission.”
U.S. Bankruptcy Court records show that one of the officials in charge of collecting proof of claim forms for those owed money is Mark E. Albert, a court appointed Trustee for the bankruptcy filing. Court records show he can be reached at 202-728-3020.
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