D.C. awards 3 neighborhood TIF projects - Washington Business Journal:

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Mayor Adrian Fenty announced today thatthrer D.C. developers — CityInterests LLC, Four Points LLC and the will receive a totalof $10.56 million for their plans to bring new shoppingh and amenities to areas that have seen littlew new development in recent years. “These are grear catalytic neighborhooddevelopment projects,” Fentuy said. Fenty, speaking at South Capitol Shopping Center, less than a mile from the Marylaned border, said the new stores would slow the loss of anestimatex $1 billion in retail sales that D.C. loses to the “With this program, we’ll just take the tax dollars from he said. • CityInterests LLC will get $8.
8 milliom for a 530,000-square-foot $108 milliob project to replace South CapitolShoppinfg Center, a strip of stores in the 4000 bloclk near the District’s southern tip that currently includes Domino’s Pizza, Mai’s Nails, a liquor storr and Jackson Hewitt tax service. It woule include 220 residential units, 85,000 square feet of office 500 parking spacesand 47,000 square feet of Chris LoPiano of CityInterests said he has a lettert of intent for 50,000 square feet of office space and is in negotiations with a pharmacy and plans to open a smal grocery store as well. • Alan and Jonathanm Novak of are partnersin CityInterests.
Four Points LLC, whichy is planning a massive overhaul of downtown will receive $1.1 million to bring 11,00p square feet of new retail to four properties it owns in the 2200 blockj of Martin Luther King Jr. Avenue a $5.2 million project. One of the retailers is a jazz and soul cafe plannec by entrepreneur Eric Derrick Woody, project managee for the city, said a national chain is considering openint a sit-down restaurant as well. • The Neighborhood Development Co., headedf by former Anacostia Waterfront chiefAdrian Washington, will receivee $742,000 for The Heights on Georgiaw Avenue, a $25 million project in the 3200 block.
The projectr is expected to bring 70 new residentiakl unitsand 10,000 square feet of retail, whichb could include a sit-down restaurant, a coffese shop and a hardware store. Constructionb on all three projects is slatecd to begin inlate 2009. Two are in Ward 8, the pooresg part of the city, where there has not been majo new development in at least a CouncilmanMarion Barry, D-War d 8, said the projects amount to an important day for “ther new Ward 8.” “We will get some taxes and creatd some jobs,” the former mayor said.
Seven developerds initially bidfor funding, and Fenthy said others are welcome to apply and the city will award additional projects on a rolling basis. Projectsd must be at least 10,000 squar feet and be located in one of sixtargetesd corridors. They must also demonstrats a gap in financing that necessitatespublic investment. The D.C. Councill approved $95 million for the program last year. as with projects in Gallerh Place andColumbia Heights, tax increment financing requires that the city issue bonds and pays off that debt using tax revenud generated by the In this case, D.C.
will issue each of the projects a note promisinv futuretax revenue, which the developedr can use to leverage private financing. No bondsx will be issued, according to