Answer: You didn't mention whether or not the affected area is in the shade, but I suspect it is because you've done everything else right to grow healthy turf. Without adequate sunshine grass cannot root well and won't thrive. Even the shade tolerant grass mixes will need to be reseeded every year or two. If the area is in full sun, I don't know why the grass won't root there. There may be residual chemicals in the soil or even concentrated dog urine. You can try digging out the affected soil and replacing it with fresh soil from another part of your yard, then reseed and see how well it roots. Hope you have better luck with your lawn this year!
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