Work is moving forward to bring a mermaid bar and other nightlife venues to troubled K Street Mall, while the city attempts to address a lawsuit over the development. At the end of May, developers David Taylor and Los Angeles-based CIM Group finished the first stage of interior work for the controversial project to redevelop long-vacant buildings at 1012 K St. and 1016 - 1022 K St. Crews cleaned up contaminants including asbestos and lead and also took down some inside walls. The developers are now working on construction drawings to gain approval to bring the shell and core up to code. They are expected to submit the drawings to the city in August to show how they plan to meet the city'