Courtesy D.C. United.

Courtesy D.C. United.

As promised, Mayor Vincent Gray sent a deal that would bring a D.C. United soccer stadium to Buzzard Point to the Council today.

According to a release, 88 percent of proposed site is now controlled by D.C. Earlier in the week, Gray said eminent domain could be used to take two remaining parcels of land, one from developer and Washington Kastles owner Mark Ein and the other from Super Salvage. Sources tell DCist soccer writer Pablo Maurer that a deal with both parties is “in the final stages,” with D.C. covering some of the costs of purchasing that land along with the team and development firm Akridge.

The plan was originally set to go to the Council before Christmas.

Under the deal, D.C. will trade the Reeves Center on 14th Street NW with Akridge for the majority of the land. Current Reeves tenants would be moved to Anacostia. “No current Reeves tenants will need to be relocated until the new Reeves Center is finished in approximately three years,” the release states. “The District will make every effort to keep select tenants in the vicinity of the 14th and U Street NW location for continuation of service to their target constituents.”

D.C. would also swap land with Pepco, which would acquire parcels at 1st and K streets NW for a new substation.

The total cost of the project is estimated at $300 million, with D.C. accepting half for land acquisition and infrastructure, and D.C. United taking the other half for building the 20-25,000-seat stadium.

“This is another complex, public-private partnership with many moving parts that advances economic development in the District,” City Administrator Allen Lew said in a release. “Throughout this process we listened to the community and discussed our progress with the Council. Ultimately I think we have negotiated a deal that spurs economic development across the city, provides for needed infrastructure improvements and continues our efforts to create jobs and business opportunities for residents.”

The legislation is now in the hands of the Council. Members have already expressed concerns about the deal, including Ward 1’s Jim Graham who would like to see an office building replace the Reeves Center.

Here are some other parts of the agreement, per a release:

  • “The ground lease includes a 30-year initial term with two five-year option extensions after which the site reverts to the District. The base rent during this term is $1 per year. However, there is a provision for the District to agree to a separate longer term for the ancillary-development portion of the site provided that DC United pays market rent during that additional term.”

  • “51 percent of jobs at the soccer stadium (ticket takers, guest services, ushers, food service, etc.) would go to District residents; 50 percent of all development-related contracts (e.g. design, construction, etc.) would to go to Certified Business Enterprise (CBE) businesses with 35 percent to small and 20 percent to disadvantaged business enterprises; and 35 percent of all stadium operation contracts (i.e. janitorial, food service, security, etc.) to go to CBE businesses.”

  • “The lease also stipulates a provision for a phased-in real-estate tax, under which the District would begin collecting DC United property taxes at 25 percent of their full rate after five years; 50 percent after 10 years; 75 percent after 15 years, with full taxes due from 20 years through the remainder of the term.”
    • Filed Under: DC United,