Freedom Forum, D.C. government close $100 million deal for Newseum to move to Pennsylvania Avenue
12.21.00
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| From left, D.C. Mayor Anthony Williams, Charles Overby, Peter Prichard. |
WASHINGTON — The Freedom Forum today completed its record $100 million purchase of the land located at the northeast corner of Pennsylvania Avenue and 6th Street, N.W., from the District of Columbia, clearing the way for the Newseum to relocate to downtown Washington.
The settlement brought to a conclusion a six-month negotiation with the District government to move The Freedom Forum and the Newseum, the interactive museum of news in Arlington, Va., to the District. As part of its July 2000 bid for the site, The Freedom Forum had offered the District government $25 million to be used at its discretion for affordable housing, contingent on the transaction being completed by the end of 2000. The $25 million grant was paid today as part of the transfer of funds.
Charles L. Overby, chairman and chief executive officer of The Freedom Forum, said, "This is historic in every way. Putting the Newseum on Pennsylvania Avenue guarantees that millions of visitors will learn about news and the First Amendment in a completely different way. We will begin immediately to plan a building befitting Pennsylvania Avenue and a museum worthy of being near its big-league neighbors."
After signing the settlement statement at a news conference today, Overby authorized the electronic transfer of $100 million to Chicago Title Insurance Co. for the sale. Fifty million dollars were immediately disbursed to the District of Columbia and the balance will be released in accordance with the terms of the contract.
Sen. Daniel Patrick Moynihan (D-N.Y.) said, "I think it fair to say that after 40 years we will have fulfilled President Kennedy's dream of the development of Pennsylvania Avenue. He wanted it 'lively, friendly and inviting.' And nothing could be more so than the Newseum. Nor yet more generous with the City and creative in its concept."
District of Columbia Mayor Anthony A. Williams said, "They say the third time is the charm. This sale is a major step forward in the economic development of our neighborhoods. Today the deal is done."
The Freedom Forum/Newseum development project will replace the existing Department of Employment Services building with a multi-use complex including the Newseum, The Freedom Forum's headquarters and international conference center, restaurant and retail facilities, and approximately 100 condominiums. The 476,000-square-foot project will allow the Newseum to more than double its present size.
The Department of Employment Services is expected to relocate by July 1, 2001, making way for The Freedom Forum to demolish the existing building and break ground for the new development by the end of 2001.
Overby said that planning for the content of the new Newseum would begin immediately with the naming of a full-time development staff under the leadership of Peter S. Prichard, president of The Freedom Forum and Newseum. Polshek Partnership Architects and Ralph Appelbaum Associates have been selected to lead the design effort for the new facility. A developer for the Pennsylvania Avenue condominiums atop the Newseum will be chosen in early 2001. "We already have received calls from people asking to placed on the priority waiting list for condos," said Overby.
Lois Zambo, executive vice president of real estate firm Julien J. Studley, Inc., who represented The Freedom Forum in the land sale, said, "This is the highest price ever paid for a piece of property in the District. It is a premium site for a premier attraction."
The law firm of Nixon Peabody provided legal counsel in structuring the proposal, negotiating the deal terms and facilitating approval processes.
Some highlights of the sale agreement:
The Freedom Forum, though tax-exempt, has agreed to pay real estate and retail sales taxes in the District. It will also require all condominium purchasers, including tax-exempt buyers, to pay real estate taxes as a condition of purchase. These provisions will help provide a steady income stream to the District.
The Freedom Forum has agreed to use District residents and local, small disadvantaged business enterprises (LSDBE) in construction of the project.
The project is expected to bring some 200 permanent new jobs to the District.
The Newseum will include exhibits on the history of journalists of color and provide educational programs for District and metropolitan-area students.
The design process is expected to take a minimum of one year. Construction and relocation of The Freedom Forum and Newseum and are expected to be completed by mid-2005.
CONTACTS: Beth Tuttle, 703/284-3722
Michael Fetters,
703/284-2895