Freedom Forum makes $100 million offer to move Newseum to D.C.

07.11.00

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WASHINGTON — The Freedom Forum disclosed today that it has offered the District of Columbia a financial package totaling $100 million to purchase the land at Pennsylvania Avenue and 6th Street, N.W., to relocate the Newseum and The Freedom Forum's headquarters and international conference center from Arlington, Va.

Charles L. Overby, chairman and chief executive officer of The Freedom Forum and the Newseum, said the foundation has offered $75 million in cash for the land, plus a grant of $25 million for low- and moderate-income housing, if the transaction is completed before the end of the year. This is an all-cash offer with no financing contingencies. A $100 million cash account has been established with Northern Trust Co., the custodian of The Freedom Forum's investments.

The proposed project would replace the existing building of the Department of Employment Services, which the city plans to relocate. The project includes the Newseum, The Freedom Forum's headquarters and international conference center, a street level restaurant, a Newseum retail store and about 100 condominiums.

The total project, including the building of the Newseum and condominiums, is expected to cost more than $250 million.

"This is the best site in the world to locate an interactive, state-of-the-art museum of news," Overby said. "This will give us the opportunity to educate millions of people from around the world about the value of a free press."

Sen. Daniel Patrick Moynihan, D-N.Y., said, "The Newseum's proposal for Sixth Street and Pennsylvania Avenue is exactly what the location calls for — outstanding architecture and a public purpose. I look forward to joining everyone who will visit the next major museum coming to Washington, D.C. The city and the avenue will both be much the better for it."

The announcement was made today at a news conference where representatives of two neighborhood associations joined Freedom Forum leaders to express support for the proposal.

Terry Lynch, executive director of Downtown Cluster of Congregations, said, "It's an unprecedented windfall for the District. We've never had this kind of offer for economic development, new jobs and affordable housing in the city. It's dynamic."

Charles Docter, chairman of Downtown Housing Now, said, "This is a win-win offer for bringing residents back to the city. ... It creates a use on the northern side of Pennsylvania Avenue that will serve as a magnet to bring people from the Mall to the restaurants and retail businesses on 7th Street and the rest of downtown. Also the planned condominiums will gain the city added income, property and sales taxes."

Overby said foundation officials have worked with District leaders and community activists to meet their needs for this site. "This plan gives the District both the best use and a premium price, with a major museum and new downtown housing. We can bring the Newseum to D.C. to join the spectacular array of museums on the Mall, and we can serve as a bridge between the Mall and the growing downtown area."

The $25 million grant would be awarded to the District of Columbia to assist with low-income and moderate-income housing in the manner and in the geographical locations that the District deems appropriate.

As part of the proposal, The Freedom Forum would waive its right to exemption from real estate and retail sales taxes. This action would ensure the District a continuing revenue stream equal to or greater than the revenue that would be generated if the site were developed for typical office use by law firms or associations.

The $100 million package would be the most ever paid for a parcel of land in the District of Columbia. The next highest price was $90,003,117, paid by the World Bank for 2121 Pennsylvania Ave., N.W., in 1992, but that site was zoned to allow 720,089 square feet of offices to be built. The site at Pennsylvania Avenue and 6th Street is zoned for a maximum of 472,387 square feet of space.

Peter S. Prichard, president of The Freedom Forum and the Newseum, said he expects the Newseum to more than double in size from its current 72,000-square-foot space in Arlington. The Freedom Forum plans to select a prominent architect to design the building and a developer with proven D.C. experience to build the condominiums.

"We need more space for our exhibits and special programs," Prichard said. "The new facility will give us the latest technology and the room to make our visitors' experiences even better.

"The Newseum has welcomed more than 1.5 million visitors since it opened three years ago, and we want to be able to offer an even better educational experience to a broader range of visitors and local residents," Prichard said. "Now the Newseum is known over much of the United States. We think the expanded Newseum near the Mall can become known the world over."

The relocation of the Newseum and The Freedom Forum will result in at least 200 permanent new jobs in the District and will offer increased educational and internship opportunities for local students.

Overby said the relocation of the foundation's headquarters and conference center will give more prominence to The Freedom Forum's four priorities: educating the public about the First Amendment, increasing diversity in newsrooms, supporting international press freedom and reaching a broader audience through the Newseum.

The multi-use development calls for about 300,000 square feet for the Newseum (including exhibit and gallery spaces, theaters, broadcast facilities, education center and administrative offices) and The Freedom Forum's offices and conference facilities; about 30,000 square feet for a restaurant and Newseum store; and 146,000 square feet for condominiums.

"We believe our proposal will give the District of Columbia another crown jewel on Pennsylvania Avenue. By providing new housing, office space, and retail facilities, our project will generate more activity in that area and help make it livelier and safer," Overby said.

"Our biggest concern is timing," he said. "We need a decision this summer so a contract can be signed by the end of the year. The Newseum's current lease in Arlington expires in 2003."

The Freedom Forum is a nonpartisan, international foundation dedicated to free press, free speech and free spirit for all people. The Freedom Forum funds two independent affiliates: the Newseum, the interactive museum of news in Arlington; and the First Amendment Center, with offices at Vanderbilt University in Nashville, Tenn., and in New York City and Arlington. Other operating offices are in San Francisco, Cocoa Beach, Fla., Buenos Aires, Hong Kong, Johannesburg and London.

The Freedom Forum was established in 1991 under the direction of Founder Allen H. Neuharth as successor to a foundation started in 1935 by newspaper publisher Frank E. Gannett. The Freedom Forum is not affiliated with Gannett Co., does not solicit or accept financial contributions, and does not accept unsolicited funding requests. Its work is supported by income from an endowment now worth more than $1 billion in diversified assets.

For more information or to arrange an interview, call Beth Tuttle at 703/284-3722.

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Freedom Forum makes $100 million offer to move Newseum to D.C.
Foundation Chairman Charles Overby announces what mayor calls 'extraordinary' bid to purchase land to relocate museum, headquarters and conference center.  07.11.00