courtesy of ‘M.V. Jantzen’
Facing a shortfall, even imaginary spending becomes unpopular with legislators, and yesterday the finance and revenue panel of the DC council killed a $61M proposed tax abatement for a hotel project in Adams Morgan that was to have incorporated the First Church of Christ Scientist at Euclid & Champlain NW. The hotel is estimated by its developer to have contributed $7M/year in various taxes which would have offset the property tax abatement that was proposed, according to a quote from the developer acquired by the Business Journal’s Michael Neibauer.
It’s frustrating to see something that wouldn’t have affected the bottom line of the city until 2015 get the axe, but when you’re facing the budget gaps that this city is facing, easy cuts with high dollar value seem like a good place to start.
Correct me if I’m wrong but at the moment the building generates little if anything in regard to revenue. Even if it is generating tax revenue there isn’t any spill over effect meaning people who come to the building do not go out and visit restaurants or retail sites? How can you give up revenue that isn’t going to be realized? If a hotel opens and it is successful the multiplier effect will be tremendous and will generate retail, food, and if we’re lucky further development and perhaps investment in real estate.
This is very disappointing–an Ian Schrager-inspired hotel in that magnificent space would have been a game changer for AdMo. Oh well, maybe if we’re lucky another jumbo slice shop will move in to capitalize on the underserved trustifarian/B&T/slice-n-barf set or, better yet, we can leave the place fallow for another decade or so . . . .
Greg & Fallow for All Says — I echo your comments. I strongly suggest you email & call the city councilmembers who were not supportive. Let them know what this project will do for Adams Morgan and the city.
I am extremely disappointed that this development is probably not going to happen. I’ve been excited about this for a couple years now. This city takes baby steps in becoming an internationally recognized city when it comes to art, music, food and nightlife. This would have been bigger than this isolated project. It would have made other developers of major hotels take notice, which in turn brings in more people that turn to NY/Miami/L.A. to spend their money.