It was announced this afternoon that Mayor Fenty has struck a deal with Hoffman-Struever Waterfront LLC for the redevelopment of the Southwest Waterfront property. As a part of the $1.1 billion redevelopment, the city will be contributing $200 million in public funding for the deal, mostly to pay for public parks, piers, infrastructure, bike trails, promenades etc. Most of the funding will come from tax increment financing as well as 'payment-in-lieu-of-taxes with the expectation that the '16 acres along the waterfront' will increase local taxes sixfold, from $5 million to $32 million. The last announcement of tax increment financing on a development was the 1150 room Convention Center Marriott Hotel.
The project is projected to incorporate "767 housing units, of which 231 will be affordable, 400,000 square feet of office space, 280,000 square feet of retail, 476,000 square feet of hotels and 150,000 square feet of cultural space...including a National Maritime Heritage Museum," according to the Washington Business Journal. In addition, JBG Companies agreed to offer their land to the partnership in exchange for a 358 room hotel as well as an estimated 45,000 square feet of retail.
The site itself totals 47 acres that stretches from the historic Fish Wharf to Ft. McNair which includes 14 acres of parks and open space. Additionally, according to DMPED,
Neighborhood Investment and Economic Opportunities:
- $100 million in infrastructure upgrades, including new parks
- New neighborhood-serving and regional retail
- Expansion and improvements to the existing fish market to include public seating
- Maritime education opportunities
- Creation of 1,300 permanent jobs in a variety of industries
- Creation of 3,000 construction jobs
- Estimated $400 million in total contracts during the next seven years, including $140 million in contracts for certified local, small and disadvantaged businesses (LSDBEs).
