The Deal That Sealed National Harbor

In contemporary times, a local construction company mined the land for gravel. Developers envisioned a military museum, a 52-story tower, a virtual arcade in buildings designed like the Parthenon and a seaside-type resort.

But nothing happened as the years went by, with politicians and bureaucrats failing to sign on to the bold ventures that would require public money and a strong economy. The timing was never right -- until now.

Peterson declined to comment for this report. He has sought to play down recent disputes between him and the county in advance of the years of development that lie ahead.

But interviews with local officials and others show that Peterson was able to avoid some of the roadblocks his predecessors experienced by making deals with the county.

The partnership got going in 2004, when Peterson entered a 10-year agreement with Prince George's over county bonds. Peterson agreed to spend $350,000 a year to help community groups. The county spent millions in bond money for roads and sewers to accommodate National Harbor, and Peterson is waiting for the County Council to approve $35 million in bonds to pay for aesthetic features. If the bonds are approved, the county would levy an additional 5 percent tax on hotels at National Harbor to pay off the bonds.

Getting residents and the politicians who represent them to go along with the project was ultimately the most significant achievement, which included resolving lawsuits brought by county residents and environmentalists who objected to the size of the development and the noise and traffic it could bring.

M.H. Jim Estepp, a former council member, said that when Peterson presented his plans for the project to the council, he knew Prince George's was about to get the "signature project" it needed to spur economic development.

But Estepp said opposition came from the very start and from every direction.

"There were people who thought it was too massive, people who didn't want to disturb the tranquility of the shoreline," he said. "And then there were even people from Northern Virginia who came over, complaining that we were going to be disturbing their view from across the Potomac."

To speed the project, Prince George's leaders put National Harbor on the fast track through the permitting process and helped persuade Congress to waive its environmental oversight. Federal officials also helped to secure a coveted interchange off the Capital Beltway and Interstate 295, which was added as part of the Woodrow Wilson Bridge construction.

The public-private agreement was a partnership that was carried out at the right time by the right people in the right place.

"The time was ripe," said Peter Morici, a business professor at the University of Maryland and former chief economist at the U.S. Trade Commission. "The time has been ripe for a long time."