Waterfront Bond Financing Act Unanimously Approved
PN Hoffman
July 15, 2008

Washington DC – The Council of the District of Columbia announced today the approval of Bill 17-591, the Southwest Waterfront Bond Financing Act of 2008. Introduced by Chairman Vincent Gray at the request of Mayor Fenty, the bill will provide $198 million in financing for public costs associated with the redevelopment of the Southwest Waterfront.

The aforementioned act authorizes the Mayor to issue District of Columbia revenue bonds secured by tax increment financing (TIF), payment in lieu of taxes (PILOT), and special assessments generated by or related to the Southwest Waterfront redevelopment project. The $198 million in public financing will pay for site infrastructure, utilities, roads, parks, promenades, waterside improvements, and public parking. These funds are available after the project is constructed by the developer utilizing private financing, and no other District resources will be used for the project.

Hoffman-Struever’s current plans provide a total of 2.4 million square feet comprised of 770 units of housing (30% of which will be affordable), 700,000 square feet of office space, 476,000 square feet of hotel space (3 hotels), 280,000 square feet of retail, 150,000 square feet of cultural space, 5 new parks, 4 new piers, a half-mile of promenade and bike trails as well as a renovation of the existing Fish Market. Construction should commence in the summer of 2010 and is expected to be completed by 2017.

Once complete, the project will generate over $40 million in annual taxes to the District, with approximately $13.3 million contributed to the general fund annually after the debt service obligation. The assessed property value is expected to increase from $945,000 to $955,000,000 and it is estimated that the project will generate $5-10 million in one-time taxes paid.

“We are proud to be the District’s partner in this endeavor and we look forward to bringing the Project’s promised benefits to the residents of the District” said Monty Hoffman, CEO of PN Hoffman. “We are ready to create a world-class destination that will reconnect Washington with its waterfront.”

About PN Hoffman
Since 1993, PN Hoffman has been developing extraordinary upscale condominium residences and mixed-use properties in the Washington, DC Metro area. The company is deeply committed to serving the neighborhoods of Washington and has built nearly 30 developments in the City since its inception.

About Struever Brothers, Eccles & Rouse
Established in 1974, Struever Brothers, Eccles & Rouse has a long-standing and prestigious record of success as a unique development company. Known for conquering challenging locations as a multi-role developer and construction manager, the firm has an intentional focus on urban mixed-use projects, neighborhood transformation, historic adaptive reuse and reinvigorating city waterfronts. With more than 16 million square feet and nearly $5 billion of total investment costs in projects completed or under development, Struever Brothers, Eccles & Rouse is a uniquely diversified, full-service real estate development and construction company.

Media Contacts:
Alanna Deal
Director of Marketing, PN Hoffman
202.686.0010 x 253
adeal@pnhoffman.com