The D.C. Council voted Tuesday to offer $6.1 million in tax breaks over 10 years to a big-time real estate company, hoping it will relocate its Bethesda headquarters into the city and open at least 100 jobs to District residents.
“This is an opportunity to lure business into the District of Columbia and recognize increased revenues,” said Councilman Jack Evans, D-Ward 2, adding that CoStar Group Inc. could add to D.C. coffers more than $3 million annually in corporate income tax.
The approved legislation — which was amended three times during nearly two hours of debate — would require CoStar to hire at least 100 D.C. residents before tax abatements could kick in. Once those positions were filled, CoStar would be required to continue hiring one District resident for every “outsider” hired, providing about 30 jobs annually at an average salary of $40,000, according to at-large Councilman Kwame R. Brown.
“So many companies say they will hire District residents … but that never happens,” said Brown, in support of the amended legislation. “We need to get D.C. residents working before the dollars and tax incentives are released.”
But at-large Councilman Michael A. Brown said he had trouble justifying millions of dollars to a company in Bethesda — when so many other businesses in D.C. were struggling.
“Why not lift all the boats, not just a couple?” Brown asked.
CoStar did not return a message left for comment.
Also Tuesday, council members debated a bill that would make the D.C. attorney general an elected position, rather than mayor-appointed.
“The attorney general serves as an advocate of the public interest, and therefore should be popularly elected by the citizens,” said at-large Councilman Phil Mendelson, the bill’s sponsor.
But Evans said, “We have a history of very good attorney generals. … I’m concerned that by electing an attorney general we may not get the top quality of person in that job that we want.” He said he didn’t see any reason for the change and suggested that supporters were simply trying to wrangle more opportunities to run for office in D.C.
