Contract agreement reached for purchase of Newseum site; Freedom Forum makes first transfer of $10 million
10.04.00
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| Freedom Forum Chairman and CEO Charles L. Overby, left, and D.C. Mayor Anthony Williams. |
WASHINGTON — Freedom Forum Chairman and Chief Executive Officer Charles L. Overby today signed a contract to purchase the land located at the northeast corner of Pennsylvania Avenue and 6th Street, N. W., from the District of Columbia. At a signing ceremony hosted by District of Columbia Mayor Anthony Williams, Overby announced that The Freedom Forum has made the first $10 million transfer of funds to Riggs Bank.
Mayor Williams responded by signing a letter transmitting to City Council the sale and purchase agreement and recommending approval of a resolution to declare the Department of Employment Services site as surplus and allow a sole-source sale of the property to The Freedom Forum. The Council's Economic Development Committee will consider the resolution on Oct. 16, and the full Council is expected to vote in early November.
"This contract signing is an important step because it demonstrates the strong commitment of Mayor Williams to make this proposal a reality," said Overby. "We are on schedule to close the transaction by the end of the year."
Mayor Williams said, "With the Newseum's move to the District, we've attracted a world-class institution to Pennsylvania Avenue that will help spur economic development in every neighborhood and create job opportunities."
On July 11, 2000, The Freedom Forum offered a total package of $100 million to the District of Columbia. On Aug. 7, Mayor Williams announced the District of Columbia's intent to accept the Freedom Forum offer.
The Freedom Forum agreed to the following terms:
Guarantee at least 146,000 square feet for housing in the development (about 100 condominiums). The Freedom Forum also agreed to require all condominium purchasers, including potentially tax-exempt buyers, to pay real estate taxes as a condition of purchase.
Guarantee a minimum of 30,000 square feet for retail and restaurant operations.
Pay real estate property taxes.
Sign a memorandum of understanding committing to use District residents and local, small, disadvantaged, business enterprises (LSDBE) in construction of the development.
Include exhibits in the Newseum on the history of journalists of color and provide educational programs for District and metropolitan-area students.
The agreement calls for funds to be paid to the District on the following schedule:
The District will receive $50 million immediately upon closing, including $25 million to build affordable housing, if the deal closes by year's end. An initial transfer of $10 million dollars has been made to Riggs Bank as "earnest money."
The remaining $50 million will be placed in escrow at closing and will be released when certain benchmarks are reached. Twenty-five million dollars, plus a portion of the interest that will have accrued, will be released when DOES vacates the building on or before July 2001. The remaining $25 million and accrued interest will be released when The Freedom Forum receives building permits.
The Freedom Forum recently announced the selection of the architecture and museum design team for the 476,000 square-foot project. James Stewart Polshek and Richard Olcott of Polshek Partnership Architects and Ralph Appelbaum of Ralph Appelbaum Associates will lead the design efforts for the multiuse development, which will include a new state-of-the-art facility for the Newseum and Freedom Forum offices, an international conference center, retail and restaurant operations, and about 100 condominium units.
The design process for the building is anticipated to take a minimum of one year. Construction and relocation of the Newseum and The Freedom Forum from Rosslyn in Arlington, Va., are expected to be completed by late 2004 to mid-2005.