The Trump Organization, headed by mogul Donald Trump, had petitioned the city for a waiver of taxes due on the property. The Trump Organization has issued petitions for other government-owned properties which have been renovated and turned into luxury hotels, restaurants, and parking locations.
D.C. Mayor Vincent Gray felt no reason to offer tax breaks for a wealthy businessman claiming $7 billion in net worth. The Trump Organization bid on the project through a competitive process. The original bid did not include any tax breaks. It would be unfair to those who bid if tax breaks were added after the fact.
Federally owned properties are often exempt from taxes. D.C. officials instituted a tax on those operating within those spaces. Similar taxes are assessed on Union Statio and other federal buildings used in commercial operations.
The city reached a $7.5 million settlement earlier this year with groups operating within Union Statio. The settlement did not include any waiver of future taxes, leaving future lawsuits open if the Trump Organization wishes to go that route.
The city can consider other bidders for the project if the Trump Organization does not agree to terms by February.
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