Troubled city-owned property gets a long-awaited fresh start

Published February 16, 2011 5:00am ET



D.C. officials touted this week’s groundbreaking on a beleaguered Southeast building as a development deal that will save taxpayers $60 million, even as the city’s total tab is expected to reach $400 million over the next two decades. The city already has spent $100 million on leasing, then buying the long-vacant building in the Nationals Park neighborhood. Plans to move the police headquarters there in 2007 fizzled when the city balked at the additional $100 million in renovation costs.

In its new deal, developer StonebridgeCarras will renovate the property and the District will pay rent to the developer for 20 years, after which the District will own the building outright.

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