D.C. Mayor Adrian Fenty announced a $200 million financing program for the development of the Southwest waterfront area Wednesday, a contribution that will make up roughly 18 percent of the $1.1 billion project.
The public funds will be allocated for new parks, piers and infrastructure, Fenty said during a waterfront press conference, calling the step a “milestone” in the progress of the project.
The legislation for the funding approval, as well as the land deposition authority, were introduced before the D.C. Council on Monday.
Legislation also has to be introduced to close Water Street permanently.
The project will create over 3,000 construction jobs and about 2,800 permanent jobs, according to Monty Hoffman, chief executive officer of developer PN Hoffman.
The project is being undertaken by Hoffman-Struever Waterfront LLC.
The financing will be paid back in future taxes through the Tax Increment Financing and Payment-In-Lieu-of-Taxes programs.
The D.C. government estimates the revitalized area will bring in $32 million in sales and property taxes, compared with the current $4.5 million.
This area is “one of the most underutilized parts of D.C.,” said Ward 6 Councilmember Tommy Wells.
That estimate of revenue is conservative, said Nina Albert, real estate development manager at Deputy Mayors Office of Planning and Economic Development.
Despite national economic worries about the future, the conditions in the metro region are “not as gloomy” as some say, said Hoffman. “I feel very good” about economic conditions.
Hoffman estimated the city could earn $40 million in taxes, noting the mixed-use nature of the project “hedges” against some economic troubles.
In total, a combined 767 condos and apartments will be built, and at least 30 percent will be designated as affordable housing.
About 100 new businesses will come into the area, with about 1.3 million square feet of space for offices (400,000 square feet), retail (280,000 square feet), hotels (476,000 square feet) and cultural purposes (150,000 square feet).
Government officials and the developers hope the council will pass the legislation this spring. Construction could begin in early 2010, with completion of the first phase occurring in 2014.
