As reported Wednesday, Donald and Ivanka Trump have finalized a deal to lease the Old Post Office for 60 years and redevelop it into a luxury hotel.
Construction could start in the first quarter of 2014 and the hotel is likely to open in late 2015 or early 2016.
Under the agreement, the Trumps will pay a base rent of $3 million a year, with increases linked to changes in the consumer price index. The government will begin collecting rent either eight months after construction begins or 20 months after the lease’s signing, whichever comes first.
To give the government additional protection, Donald Trump also agreed to provide a $40 million personal guaranty as well as what is commonly called a “bad acts” guaranty, covering situations involving fraud, misconduct or failure to pay taxes.
You can read details of the agreement as it was sent to Congress and see renderings of the project here.
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