(Washington, DC) Mayor Adrian M. Fenty on Tuesday announced $95 million in new financing to encourage neighborhood development, which can include new neighborhood-serving and destination retail, parking and other types of infrastructure along six of the District’s Great Streets corridors.
“Our primary responsibility for economic development is to encourage development in every part of the city, especially in places where the market might not otherwise go on its own,” said Mayor Fenty. “This new program is going to pump millions of dollars into some of our most important commercial districts, creating new jobs, better amenities and more vibrant places.”
The DC Council has approved the $95 million program, which authorized the creation six corridor-based Tax Increment Financing or (TIF) districts in the following priority areas:
• Martin Luther King, Jr. Avenue SE / South Capitol Street: $10 million (Ward 8);
• H Street NE: $25 million (Wards 6 and 5);
• 7th Street/Georgia Avenue NW: $25 million (Wards 1 and 2);
• Petworth: $10 million (Wards 1 and 4);
• Minnesota-Benning: $15 million (Ward 7); and
• Pennsylvania Avenue SE: $10 million (Wards 7 and 8).
Many of these neighborhood districts have undergone significant changes over the last few years, but retail development in their commercial districts has lagged behind. The District plans to work with developers to anchor and stabilize neighborhood commercial districts by attracting new businesses, creating new parking garages, utilities and other types of infrastructure that has been lacking in these areas.
Bonds will be used to provide the initial funding for the projects and they will be repaid using a portion of the new property and sales taxes generated by the projects. TIF has been critical for encouraging development in parts of the District where it might not otherwise occur. Gallery Place, the International Spy Museum and DC USA in Columbia Heights were all made possible through the District’s TIF program.
The funds will be available competitively through an application process. Developers are expected to apply for the resources and demonstrate true financial gaps in development projects containing no less than 10,000 square feet of retail. Funding requests are due to the District on April 18, 2008.
Please use the link below to access the Notice of Funding Availability.