DC Says No to Trump Request for Tax Breaks on Old Post Office Project

WASHINGTON, DC-A spokesman for Mayor Vincent C. Gray says that granting tax breaks to the Trump Organization in connection with its planned redevelopment of the Old Post Office Pavilion here would be unfair.

Pedro Ribeiro, a spokesman for Mayor Gray, told the Washington Post it would be unfair to offer a tax relief to the Trump Organization when it was awarded the project through a competitive bidding process. “It was never part of the bid proposal that the project would not be subject to the tax,” he said.

The redevelopment plan calls for the Trump Organization to lease the property from the government and redevelop it into a 261-room luxury hotel, spa. The project would also include three restaurants, a parking garage and a large ballroom in a vacant and deteriorating annex.

David Orowitz, vice president for acquisitions and development, for The Trump Organization, declined comment to the newspaper regarding the tax relief issue. Orowitz said recently that his team had thoroughly examined the Old Post Office and hadn't discovered any surprises that might inflate the project's expected $200 million renovation cost. “I think the reality is we've been very happy with what we've found in the building,” he said. “With old buildings there is a lot of risk, but they've actually done a very good job caring for the building.” See story in the Washington Post.