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Washington, D.C. May Have Lost Over $27M In One Land Deal

The D.C. Council could have earned $27.6 million off of one parcel of land in Shaw, but instead it sold the lot at 965 Florida Avenue NW for $400,000. The Washington Post reported that the 1.5-acre site could be worth over $27 million if it was auctioned off for luxury housing and high-end retail, but instead the plans for the plot of land include a 10-story building with a Whole Foods and 350 residential units, more than 100 of which will be designated for affordable housing. Two independent firms hired by the city valued the parcel of land to be worth almost $5.9 million. Even with the major price chop, The Washington Post still regarded the land deal as a major misstep by Mayor Muriel Bowser and the Council. Brian T. Kenner, Bowser's deputy mayor for planning and economic development, told The Washington Post that the $400,000 sales price makes sense when taking into account the number of affordable-housing units planned. It's worth noting that while Inclusionary Zoning does have a mandatory requirement of affordable-housing in new developments, the minimum required of this project would have been 28. In a September 15 letter from Council Chairman Phil Mendelson, he said the additional funds from the land deal could have helped end the homeless crisis, assist other affordable-housing projects, or fund one of the city's most run-down public schools, Garrison Elementary. The developers for the project include Mid­Atlantic Realty Partners and Ellis Development Group.
· How D.C. turned $27 million into $400,000 [The Washington Post]
· FAQs - Inclusionary Zoning [DCgov]