D.C. United Stadium Deal Undervalues Reeves Center, Overvalues Buzzard Point

The District is spending about $25.7 million too much on a land-swap deal to build a new stadium for D.C. United, according to a report released Wednesday.
The report, a cost-benefit analysis of the 2014 Soccer Stadium Development Act, was commissioned by the D.C. Council. The Act outlined an agreement to trade land at Buzzard Point, the planned site of the new stadium, for the Frank D. Reeves Center at 14th and U Streets NW, one of the most sought-after city-owned properties in the city.
As described by the report, the deal is “a series of land exchanges” in which D.C. would get the Buzzard Point property and lease it to D.C. United. The team would then build the stadium and develop other parts of the property, including a planned hotel. In addition to being home base for D.C. United, the stadium would also host exhibition games, concerts, and other events. As part of the deal, the Reeves Center would be exchanged with developer Akridge, which would lease it back to D.C. for three years. After that, the company plans to demolish the building and construct a mixed-use project redeveloping the site with office, retail, housing, parking and a farmer’s market.
The cost of the proposed stadium is estimated at $286.7 million, of which the D.C. government would commit to contributing $131.1 million. The report notes that the price would make the new arena the most expensive professional soccer stadium in the U.S.
The report concludes that “the proposed agreements overvalue property to be acquired for the stadium by at least $19.4 million and undervalue the Reeves Center by $11.2 million. After a committed contribution of $4.9 million from D.C. United and Akridge, the net overpayment is estimated to be approximately $25.7 million. Using eminent domain to acquire these properties could result in lower acquisition prices, but there are also costs associated with the condemnation process.”
But it notes that the stadium would likely generated $2.6 billion from 2015-2046. Over the 32-year period, the report suggests that benefits would exceed the costs of the stadium by about $110 million as well as significantly speed up development in the Buzzard Point neighborhood.
See other articles related to: city council, dc united, reeves center, stadium
This article originally published at https://dc.urbanturf.com/articles/blog/council_report_stadium_deal_undervalues_reeves_center_overvalues_buzzard_po/9190.
Most Popular... This Week • Last 30 Days • Ever

Ten years later, plans to construct nearly 150 townhomes at DC's most hotly debated d... read »

LEGO lovers will likely be first in line for the National Building Museum's latest ex... read »

Last year, Shiloh Baptist Church selected Monarch Urban to redevelop 1515 9th Street ... read »

JBG Smith has plans for a seven-story project along Crystal Drive.... read »

The "trailer park" where homes sell for millions; a renters utopia; and ideas for whe... read »
- Reservoir District: 146 Townhomes Planned at McMillan Site Look For Final Design Approval
- BRICK CITY: DC's New LEGO Exhibit Brings in Architecture From Around the World
- HPO Recommends Approval For 45-Unit Condo Development Pitched For Former Church Site in Shaw
- And Another One: Block-Long, 370-Unit Development Pitched For Crystal City
- Wednesday's Must Reads
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Visit guides.urbanturf.com or start browsing below!
First-Timer Primers
Intro guides for first-time home buyers
Unique Spaces
Awesome and unusual real estate from across the DC Metro