This was originally posted to the Adams Morgan Listserv on May 29, 2019, as message #51264, groups.yahoo.com/neo/groups/AdamsMorgan/conversations/messages/51264
Donatelli, Blue Skye land equity partner for Hill East opportunity zone project
(Washington Business Journal – May 29, 2019)
DMPED and Council should move immediately to either block this Opportunity Zone deal and/or demand Donatelli share the proceeds with families formerly housed at DC General. This deal sounds like a typical Donatelli rip-off of public assets. Seems like he’s going to walk with about $45M or so in cash on a publicly subsidized deal on a building 3 years behind schedule.
Donatelli after sitting on the deal for years, got the government to remove about 67% of the affordability from this 262 unit building to a second fantasy afforable building. Reducing the building from a required 30% affordability down to IZ levels. The already got the government to come and do the infrastructure work on the city’s dime although the price of land was reduced to pay for this infrastructure work. Waited until DC General was closed which increased the value to break ground on the building. Instead of DMPED making them do the affordable build first allowed them to shift it a second phase, which Donatelli will come back to the government for more subsidy. This when DMPED and the City Council allowed delays to support getting financing on the affordable units in the deal which will get built God knows when. All while the land values more than doubles.
Donatell now having created a market building and a fantasy affordable building, sells a majority the equity in the market building to EJF leveraging OZ. This is they very use of OZ which is most frowned upon, a luxury apartment project in area with already has high median incomes and home values.
It’s as if the city wrote Donatelli a check for $45M for not building affordable housing. This is a financial scam. Former residents of DC General should get at least $40M of this divided between 300 homeless families about $130K ea. DMPED should take $5M and transfer to Park Morton NCI. As well, take back the second parcel from Donatelli.
William