Reply to Chevy Chase Community Center Redevelopment

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][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
[/quote]

We don't know what the projected lease payments are or how much "affordable" housing the development will contain.

But the future for the "Chevy Chase Civic Core" is welcoming, vibrant, inclusive, equitable and glorious!*

* for the crony developer that is chosen.[/quote]

Sure, be mad that the specifics aren't worked out yet.  And it is fair to be skeptical that the goal will be achieved.  But it isn't wrong to have a goal/vision.

I was just answering the question about 99y ground leases.  They are common and the city does generate significant revenue from them.  It is not as though they are getting 0 and forfeiting 99 years of property taxes.[/quote]

Actually they are common. There are several public facilities just in NW DC that has them including the West End library and the Apple store on Mt Vernon Square.

[/quote]

That is literally what I said?[/quote]

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