The District ended its epic two-year legal battle with a politically-connected developer with a whimper, not a bang. Rather than go to court, the city agreed to settle its civil lawsuit against 2100 MLK Associates, the real estate partnership co-owned by R. Donahue Peebles — a supporter of Mayor Vincent Gray — for just a tenth of $1.2 million it was accused of overbilling the city government.
The $120,000 settlement doesn’t even cover the city’s legal expenses in the case, let alone recoup the $600,000 in questionable expenses it had already paid. D.C. also agreed not to pursue any additional claims against Peebles’ firm. This no-fault settlement ensures that District taxpayers will never find out why they were billed for $3,700 for political contributions to three D.C. council members; $1,000 for fundraisers in Florida, where Peebles moved in 1996; more than $2,000 for champagne and bar tips; and janitorial services, trash removal and other fees that should have been covered by the city’s 30,000-a-month rent. Taxpayers will also be left in the dark about why the city renewed this highly questionable lease for 10 more years even before the audit was completed.
