wpostServer: http://css.washingtonpost.com/wpost
Robert H. Smith School of Business
The Motley Fool

Market Foolery Featured Podcasts

  • MarketFoolery: 04.22.2014
    Netflix rises on strong 1st quarter numbers and a well-executed price increase.  Valeant Pharmaceuticals makes a $45 billion bid for Allergan.  Plus, we analyze the latest results from McDonald’s and the new “Pay To Quit” program at Amazon.
  • MarketFoolery: 04.21.2014
    Hasbro shares rise on 1st-quarter profits.  LinkedIn tops the 300 million member mark.  And we dip into the Fool Mailbag to discuss the prospects for Airbnb’s potential IPO.
  • MarketFoolery 04.17.14
    When a company has legal problems, what does it mean for investors?  What does Yelp’s case before the Virginia State Supreme Court mean for Google and TripAdvisor?  And what does Adam Carolla’s legal battle mean for the future of the MarketFoolery podcast?  We tackle those questions and the exciting world of space law with Assistant General Counsel Chris Harris.
Capital Business
Posted at 05:07 PM ET, 03/29/2013

D.C. issued $400,000 loan for failed Metro project

On top of losing out on a deal to acquire Metro-owned property on Florida Avenue, development firm Banneker Ventures is stuck repaying a D.C. Housing Finance Agency loan that it took out despite having never acquired the land.

The housing financing agency, headed by Executive Director Harry D. Sewell, first issued a loan of $300,000 to Banneker in September of 2008 when it appeared highly likely that the Metro board would approve the sale of the property to Banneker, the D.C firm headed by Omar A. Karim. The loan amount was increased to $400,000 in 2009.

Banneker went to work planning the project, dubbing it “The Jazz,” but Metro never finalized the agreement. Its board of directors tabled approval of the sale and in 2011 opted instead to sell the property to the JBG Cos., of Chevy Chase, for $10.2 million.

Sewall issued a statement saying the loan “was made for pre-development costs associated with the construction of three mixed-income and mixed-use buildings consisting of a total of 103 residential units.”

He said the loan comes due Nov. 1 and that Banneker is current on payments, even though the buildings it planned will never be constructed.

Earlier this week, Banneker sued Metro, former Metro board member Jim Graham and competing developer LaKritz Adler, alleging in a 60-page complain that Graham scuttled the deal in an attempt to secure the deal for LaKritz Adler. Banneker asked for $100 million in damages.

Graham, who represents Ward 1 on the D.C. Council, issued a statement calling the accusations “spurious and wholly unfounded.” Metro does not comment on pending lawsuits. LaKritz Adler did not return the Post’s inquiries.

Follow Jonathan O’Connell on Twitter: @oconnellpostbiz

By  |  05:07 PM ET, 03/29/2013

Tags:  Banneker Ventures, Jim Graham, Metro, commercial real estate

 
Read what others are saying
     

    © 2011 The Washington Post Company