Reply to Chevy Chase Community Center Redevelopment

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[quote=Anonymous][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]

DC gets lease payments equivalent or greater than tax revenue.  It is locked in and a safer revenue stream for the city.  It is a normal and common practice.[/quote]

Are you correct or is the poster after you?

What are the size of these lease payments?[/quote]

I don't know what the exact terms are, because no ground lease has been executed.  But if you want to know more about how common these are, here are some sources:

https://www.fool.com/investing/stock-market/market-sectors/real-estate-investing/commercial-real-estate/ground-lease/
https://www.rockefellergroup.com/news/jv-led-by-stonebridge-and-rockefeller-group-officially-breaks-ground-on-washington-d-c-s-first-new-office-development-of-2023/
https://dmped.dc.gov/page/waterfront-station-ii
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