Alert: O Street Market vote this afternoon

This is an example of how giving $600 million+ in public financing for a baseball stadium (while also needing to invest in modernization of DC schools) has a real impact on the District's finances and the ability to finance important neighborhood development projects such as the O Street Market now and in future. Councilmember Mendelson was concerned with a comment by our own councilmember that the District still has $100s of millions a year that it can borrow to finance neighborhood projects, particularly given CFO Ghandi's recent warning that the District is quickly approaching 12% of its budget going to debt service, which raises red flags for Wall Street. Other councilmembers wanted assurance that spending on the O Street Market would not deplete available city financing to the extent it would place projects in their own wards at risk. For this reason, the O Street Market was taken off the consent agenda to allow for greater discussion and questions on the larger financial issues. It remains up for a vote this afternoon, and despite the general concern, it still seems very likely to pass (knock on wood).

Here's an Examiner article on Ghandi's letter of last week: http://www.examiner.com/a-1480734~Gandhi_letter_urges_District_leaders_to_limit_the_amount_of_debt_issued.html

The Post has the actual letter online: http://blog.washingtonpost.com/dc/debtletter.pdf

Posted By Cary Silverman / At 7/15/08 11:54 AM

UPDATE: There was a unanimous vote this afternoon on first reading of Bill 17-800, the “City Market at O Street” Tax Increment Financing Act of 2008”. There will be a second reading in September.

Posted By martin / At 7/15/08 1:29 PM