The D.C. Council on Tuesday took a preliminary step to approving legislation authorizing the District of Columbia to purchase a 66-acre portion of the former Walter Reed Army Medical Center and convert it into a mix of residential, office and retail space.
A final council vote on the measure is expected March 1. The District will pay the Army $22.5 million and obtain the parcel through an economic development conveyance, under an agreement announced in November that does not include any revenue sharing.
The city is expected to close on a deal with the site’s master developer — a joint venture of Hines Interests LP, Urban Atlantic and Triden — within the year, reported WTOP.
“Construction is expected to begin within five to seven years after closing,” Cynthia LeFevre, legislative counsel to the D.C. Council, told the radio station.
LeFevre expects “substantial completion” of the entire redevelopment project within 23 years.
Under the 30-year ground lease the District and the developers agreed to, revenue from eight years of lease payments will offset the site’s acquisition cost. The city will collect a 1 percent administrative fee when the development team sells individual parcels to homebuilders and other developers.
The development team plans to convert the Army hospital campus into more than 2,000 residential units, a town center, a hotel/conference center, office space and other uses. More than 20 percent of the project’s townhomes, condos and apartments will be priced to be affordable for residents earning 30, 50 and 80 percent of the area’s median income.