Monday, December 28, 2009

More tax breaks for Columbia Heights developers

It's tax deal time if you're a developer in Columbia Heights. DCUSA got one, Ellwood Thompson's got one (but I have no idea what their status is, despite multiple attempts to contact them), the View 14 condos at 14th and Florida got one, and now Highland Park at 14th and Irving looks to receive one.

Originally proposed in May, the bill is about to be passed. The bill gives tax breaks to the Highland Park building, as well as the Park Place building in Petworth, both developed by Donatelli Development.

Now I'm ok with giving tax breaks to new businesses coming in, but giving them to businesses already in the area seems a little odd. Then again, the Allegro building faced foreclosure recently after the developer couldn't pay their bills, and was sold. Maybe this is aimed at averting those sorts of problems.


Anonymous said...

Andrew, you speak of the Allegro going thru a foreclosure at the end of your piece. So tell me, what is so wrong with the developers of View 14 or Highland Park or such being foreclosed upon? Would we not find a sync as to real value of what is being built?

In any event, with the tax deals, is the City assured that these developers are purged of their developer fees and management fees and profits or is the tax break really making sure that they are paid in full?

I do wonder how much in campaign contribution money would not get to the coffers of Fenty and others if these 'profits' were not paid out to the likes of DCUSA, Donatelli and others?

Your thoughts please?????

Andrew said...

I didn't say anything about it being good or bad. It's good to have developers working here, but at the same time, developers would probably invest in riskier projects if they know the city will just help them out.

Matt said...

Rick Hood from Ellwood Thompson's sent me a nice email last week in which he said that the developer isn't working with them much, and that the developer was more interested in working with national tenants. But he wanted to make it clear that they really want to be in Columbia Heights.

Maybe we need to be emailing the developer and making it clear that we want ET here.

Andrew said...

Matt, interesting. Could you forward me the email or his email address? Thanks!

Anonymous said...

Unless, the deal was changed after public commitments, the city owns about 15% of Highland Park. No tax break should be given to Highland Park I or II. A portion of Highland Park II is still owned by the city. Floreclosure of Highland Park would not hurt the city or Columbia Heights. The city need only find a new development partner. Which I don't believe will be hard.

These tax abatements as written make not requirements of the developer. In fact the specifically allow these developers to seek additional support from the city.

The tax breaks given to Donatelli, View 14 and others takes away from the opportunity to help Ellwood Thompson, and small and local businesses.

Anonymous said...

This shit PROMOTES gentrification. I can't wait to oust Fenty and his administration in 2010!!!

Anonymous said...

they need to stop taxing my shit and giving it away to millionaire developers developing condos no one can afford.