Reply to Chevy Chase Community Center Redevelopment

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]This does not bode well for downtown. Wonder how tightening credit may impact the CC project?

https://www.bizjournals.com/washington/news/2023/12/07/dc-madison-highland-office-conversion-treasury.html
[/quote]

Not as much.  Because DC is retaining the land and entering into a 99-year ground lease with the developer, the developer will not have to pay the land acquisition costs for the Civic Core.  This provides more project flexibility.[/quote]

How is that better?  DC takes on the main risk + doesn't get any property tax revenue.[/quote]

It’s better for the developer.[/quote]

Much better for the developer, who doesn't bear the very substantial cost of purchasing the land (or paying property taxes on the land).  Meanwhile the developer has a 99-year lease on the property, which is a long time.  At the end of the lease, the buildings will revert to the DC government, but they likely will have little value at that point.[/quote]

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