The DC Council has granted final approval to a bill that clears the way for The Advisory Board Co to relocate its HQ to a Douglas Development Co planned development in Mt. Vernon Triangle.
The council has approved the Local Jobs and Tax Incentive Act of 2015, which will make the Advisory Board eligible for up to $60M in tax breaks as part of its move to the Jemal family's 756k SF site at 655 New York Ave NW, the Washington Business Journal reports. The Advisory Board signed for about 500k SF with Douglas Development in September, and agreed to create at least 1,000 new jobs in the District in exchange for the tax break.
The tax break is structured as a performance-based incentive of about $6M per year for the first 10 years of its 15-year lease and contingent on the company meeting annual job creation goals. Councilwoman Elissa Silverman was the lone dissenting vote, due to previously expressed concerns that the District was incentivizing a company for something it may have done anyway.
The Advisory Board leases about 300k SF in two buildings at 2445 M St NW and 1227 25th St NW, with leases expiring in 2017 and 2019. Mayor Bowser’s administration has estimated that the deal will net the city $300M in tax revenue. [WBJ]
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