(Washington, DC) The District, on Thursday, completed a land swap with local developer Kingdon Gould III, which gives the city a key property it needs to build a new 1,150-room convention center headquarters hotel at Ninth Street and Massachusetts Avenue next to the Washington Convention Center.

“This deal sets in motion literally hundreds of millions of dollars worth of economic development projects,” said Mayor Adrian M. Fenty. “We now have the land we need to build a world-class headquarters hotel and Mr. Gould and his team can move ahead with their plans at the Old Convention Center site.”

Under the terms of the deal, the District received a 60,000 square foot property North of Massachusetts Avenue along Ninth Street and Gould received a similarly-sized property on the northeast corner of the Old Convention Center site at Ninth Street and New York Avenue.

In late September, Fenty announced the District had reached an agreement with Marriott International and the Washington Convention Center Authority (WCCA) to build a Marriott Marquis Hotel on the Gould site and land owned by the authority. The District agreed to provide $134 million in Tax Increment Financing (TIF) for the project, which will come from the proceeds of the sale of WCCA-issued bonds. The bonds will be repaid using a portion of the new tax revenue generated by the hotel.

Marriott has agreed to build a hotel that complies with the District’s new green building standards. The company has also agreed to hire District residents to fill at least 51 percent of the new jobs created by the hotel and work closely with certified local, small and disadvantaged businesses. Marriott will also implement a job training program to prepare District residents for jobs at the property.

Gould, meanwhile, has yet to announce what he intends to build on the former convention center site, but it will complement a mixed-use project underway by Hines/Archstone-Smith on much of the rest of the 10.2 acre site.

The Hines/Archstone-Smith team is planning 280,000 square feet of retail, 450,000 square feet of office space, 690 units of housing and world-class civic spaces. The project is expected to break ground at the end of next year.