(Washington, DC) – Mayor Adrian M. Fenty on Friday announced the District has selected a development team led by the Donohoe Cos. to build a 260-room luxury hotel, new London-based jazz club, neighborhood retail, restaurants and about 166 apartments on a city-owned site at Fifth and Eye streets in the Mount Vernon Triangle neighborhood.

“This project is the perfect gateway between our bustling Chinatown and Gallery Place entertainment district and the emerging Mount Vernon Triangle neighborhood,” said Mayor Fenty. “It is also a great example of a development team working with community leaders to put together the best project for their neighborhood.”

The 475,000-square foot project, called Arts at 5th I, will be anchored by a ME by Melia, a high-end Spanish hotel. It will also include a music venue called the Boisdale Jazz Club, a bike shop, a hardware store, book store and café. The Zenith Art gallery will also take space there.

The development will also feature 166 apartments, where 50 units will be reserved as affordable for renters earning less than 60 percent of the area median income. The developer has also proposed a 238-space underground parking garage.

While the development is led by Donohoe, it also includes Holland Development Group, Harris Development and Spectrum Management.

The Fifth and I Street site was transferred to the District government in October 2007 after the dissolution of the National Capital Revitalization Corp. (NCRC). The Office of the Deputy Mayor for Planning and Economic Development, which is managing the former NCRC’s real estate portfolio, issued a solicitation for proposals earlier this year.

The District will begin formal negotiations with the Donohoe-led team immediately.