District of Columbia

Washington,

Municipal Building 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 a land assemble strategy involving two public-private partnership opportunities, which were being considered as part of a soccer stadium deal. The projects included the redevelopment of the Frank D. Reeves Municipal Center and the construction a new municipal center. To complete the assignment, we developed preliminary programs, budgets, financial projections, and tax revenue forecasts for each project. In the early stages of negotiation, the District considered a transaction with a local developer for the Reeves Center site in exchange for certain properties that comprised a portion of the soccer stadium site. Under this scenario, the Reeves Center would have been redeveloped as a residential building with below-grade parking spaces and 33,000 SF of ground-level retail space. Our analysis revealed that, over the construction period and life of the building, the project would introduce over $312 million in total economic activity, support $118 million in earnings, and generate $85 million in fiscal benefits to the District. As a result of the potential land transaction, the District would have needed to develop a new municipal center in order to accommodate the relocation of District agencies from the Reeves Center. We found that over the construction period and life of the building, the project would introduce $230 million in total economic activity, support $79 million in earnings, and generate approximately $11 million in fiscal benefits.