The District will pour more than $100 million into upgrading the parks along the Anacostia River using annual payments from the developer of the new U.S. Department of Transportation headquarters.
The “payment in lieu of taxes” deal has JBG Cos., the developer of the DOT’s 1.3 million-square-foot facility in Near Southeast, making annual payments into a fund that will be used to finance eligible waterfront projects.
They include construction of the new Southeast Federal Center and Diamond Teague parks and restoration of Kingman Island and Marvin Gaye Park.
The annual payment will be used to pay down the debt on $111.5 million worth of bonds to be purchased by Wachovia Bank, Mayor Adrian Fenty’s office announced last week.
“This is a great example of how the District can work with the private sector to find creative ways to finance great projects without dipping into our general fund,” Fenty said in a statement.
In addition to parks in Near Southeast – near the Washington Nationals’ new ballpark and the massive new community dubbed “The Yards” – the city also might use a portion of the money for infrastructure at Poplar Point, parks on the Southwest Waterfront or a new pedestrian bridge connecting the Parkside neighborhood with the Minnesota Avenue Metro station.
How will the District ultimately decide how to spend its windfall? Ask the D.C. Council, one member suggested.
“One of the things is to work with the committee chair with oversight of parks,” said Ward 5 Council Member Harry Thomas Jr., chair of the Committee on Libraries, Parks and Recreation. “I could help them figure it out.”
