Investigators Seize Embattled Agency's Computers

The D.C. inspector general's office has confiscated computers from the offices of the National Capital Revitalization Corp., the quasi-public agency that develops District land in low-income areas and that the city plans to abolish by September, sources said yesterday.

Inspectors entered the agency's suite on M Street NW to take the computers Wednesday. Austin Andersen, a spokesman for the inspector general, confirmed that the office is conducting an investigation. He would not elaborate.

A source familiar with the investigation said financial information was stored on the computers.

The investigation follows a preliminary vote by the D.C. Council on June 5 to close the revitalization agency and its sister entity, the Anacostia Waterfront Corp., which is in charge of developing the city's property along the Anacostia River. Both agencies have been criticized for high turnover, ineffectiveness and nearly bungling a land deal for an $800 million redevelopment along the waterfront last year.

The council will take a final vote on elimination of the agencies July 10. They are expected to cease operations by Sept. 30, the end of the fiscal year, said Sean Madigan, spokesman for the office of the deputy mayor for planning and economic development.

The economic development office would take over the duties of the two development corporations. Madigan said his office has not decided which employees or how many will be transferred from the agencies to economic development.

He would not discuss the raid. "We cannot comment because it's an ongoing investigation," he said.

Council member Kwame R. Brown (D-At Large), who heads the economic development committee, said he was shocked and did not know about the investigation.

"I hope whatever it is, they get to the bottom of it," he said.

Brown and other council members have criticized both agencies, saying they have taken too much time to develop city property and are poorly managed because of high turnover.

The National Capital Revitalization Corp. has had six chief executives in six years. It was intended to spur development in disadvantaged neighborhoods by attracting stores, businesses, jobs and housing. Since 2000, the agency has closed on 20 real estate transactions, including a historic theater, a supermarket and condominiums at Tivoli Square in Columbia Heights. But recently, its officials have been criticized for moving too slowly in redeveloping the Skyland Shopping Center in Southeast Washington.

Although officials at both agencies tried to defend their roles as significant in recent months, Mayor Adrian M. Fenty (D) and the council decided that the city should eliminate them and administer development projects directly.

"I think we need to move forward on July 10th," Brown said. "We need to go into a different direction."