Economic Development
Tax Increment Revenue Bonds
Ferris, Baker Watts served
as co-manager for the issuance of $45.995 million Tax Increment Revenue Bonds
to finance the Mandarin Oriental Hotel Project
located in the District of Columbia. The Mandarin Oriental Hotel is a
full service luxury hotel with appropriate ancillary uses and amenities
to be located within the Portals complex at 1330 Maryland Avenue, S.W.,
Washington D.C. The principal components of the hotel complex include:
(i) a 400-guest room luxury hotel with approximately 33,000 square feet
of associated convention, meeting and banquet space; (ii) two restaurants;
(iii) a spa and health club with indoor pool totaling approximately 10,000
square feet; and (iv) an approximate 90,000 square foot parking garage.
The TIF Area comprises over 2,500 acres (approximately 3.9 square miles)
and includes a substantial portion of the downtown area in the District.
The District has been authorized to dedicate Incremental Real Property
Taxes and Incremental Sales Taxes to the payment of debt service on TIF
Bonds issued to finance certain eligible projects. As a critical part
of the security, the District has covenanted to replenish a Reserve Account
of approximately $15 million from the District’s portion of the
Incremental Taxes. The Bonds were insured by FSA thereby obtaining "triple
A" ratings from the three (3) major rating agencies.
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