District of Columbia

Washington,

Hotel Economic And Fiscal Benefit Analysis

The District of Columbia Department of General Services selected B&D in 2014 to analyze the economic and fiscal benefit of ancillary development adjacent to the future D.C. United (Major League Soccer) stadium located in the Buzzard Point neighborhood of Washington, DC. With spending needed for the construction and operations of a new hotel, we were tasked with quantifying the impact such spending would have on the D.C. economy. To complete this assignment, we developed a preliminary program, budget, financial projections, and tax revenue forecasts for a new 200-key hotel development. We quantified both one-time and recurring economic and fiscal benefits. The analysis revealed that the construction of the hotel would introduce over $38 million in economic activity, add $4.5 million in wages, and support 87 full-time equivalent jobs in the District of Columbia. Spending on construction materials, supplies, and employee salaries over the construction period was projected to generate over $1.4 million in direct and indirect fiscal benefits to D.C. On an annual basis, the development would generate an estimated $15.4 million in economic activity, support 80 full-time jobs, and add over $2.8 million in employee earnings. Over a 30-year period, the mixed-use development would generate approximately $84 million in fiscal benefits. Our work helped the District make informed decisions during the negotiation of a development agreement with D.C. United. In 2015, the District and D.C. United entered into a long-term public-private partnership to develop a $300 million stadium to serve as a catalyst for revitalizing the Buzzard Point neighborhood.