Donald Trump is coming to Washington—his hotel brand, that is.
The U.S. General Services Administration (GSA) yesterday selected the Trump Organization to redevelop the Old Post Office Pavilion (1100 Pennsylvania Avenue), a Downtown treasure and historic landmark. The move will help reinvigorate Pennsylvania Avenue, dubbed America’s Main Street. It also will leverage nearly $200 million in private sector funds and provide, according to DowntownDC BID estimates, 150 to 200 new jobs and $7 million to $8 million in new tax revenues for the city.
“The redevelopment of the Old Post Office into a first-class hotel with 250 rooms and restaurants with cafe tables on Pennsylvania Avenue is exactly what is needed to continue to enliven the boulevard and make the Federal Triangle more inviting to all,” said Gerry Widdicombe, the DowntownDC BID’s economic development director.
“This is an example of a win-win-win partnership for the federal government, DC government and the Trump team,” he added. “We compliment GSA for moving this project forward and envision a project that will have the impact of the Hotel Monaco (700 F Street), which GSA managed into a fabulous success.” The GSA leased Hotel Monaco, formerly the International Tariff Building, in 2000.
Last March, under pressure from Congress, the GSA issued a request for proposals (RFP), seeking a private partner to restore the 400,000-square-foot (SF) Old Post Office and the adjacent vacant pavilion, whose use has either not been decided or yet unveiled.
The winning bidder was originally scheduled to be announced last November, but because of the overwhelming number of proposals received, the agency delayed making a selection until yesterday to allow for a fair and thorough review of the numerous complex proposals that were submitted.
Among those who competed for the change to remake the 112-year-old historic landmark: Hilton Worldwide, Monument Realty, National Museum of the Jewish People organizers, Carpenter & Co., and the JBG Companies. Their ideas ranged from creating a hotel to a museum to a media center.
But in the end, the GSA decided the Trump Hotel Collection proposal represented the strongest development team, the best long term potential for the local community, and the most consistent stream of revenue for the federal government. In addition to providing more than 250 hotel rooms, the Trump Organization plans to offer world-renowned restaurants, a spa, and conference facilities.
The Trump hotel will join the Newseum (555 Pennsylvania Avenue), Central Michel Richard restaurant (1001 Pennsylvania Avenue) and Café du Parc (1401 Pennsylvania Avenue), all vibrant additions to America’s Main Street, in 2016—provided negotiations between GSA and the Trump Organization proceed smoothly over the next year. Both must negotiate a detailed agreement for redeveloping the building, which will have a 60-year lease. After the lease expires, the building will revert back to Uncle Sam.
If all goes well, renovations could begin in 2014. Congress is pleased. The Old Post Office Pavilion loses $6 million annually because of underutilized space, low retail rents and high operating costs.
A new day is coming.