The Growth Machine wants money too

According to "Massachusetts governor wants US stimulus funds to spur private development" from the Boston Globe, a report produced by the Downtown DC BID, "DC's Response to the Global Finacial and Economic Crisis," as well as previous calls to Congress by developer groups.

From the Downtown DC BID report:

... there are steps that government, business and civic leaders can take to both minimize the adverse impacts of the global financial and economic crisis and to maximize the city’s recovery when conditions become more favorable.

These steps are:

􀂄 Partner with federal agencies to maintain and expand their presence in the city

􀂄 Develop economic development strategies for key sectors to create new development and job opportunities

􀂄 Allow more flexibility for public/private real estate development opportunities

􀂄 Continue to make strategic investments in the economy, infrastructure and neighborhoods

􀂄 Devise tax policies to make commercial development and occupancy costs in DC more competitive regionally

􀂄 Improve regional cooperative efforts

Taxes aren't the reason why DC commercial development and occupancy costs aren't "more competitive regionally," it has to do with the size of properties--in other words the inability to build taller projects--and the resultant bid up in value of the property combined with constant demand to be located near the federal government.

(One way to think of this is "chance favors the prepared business lobby.")

Of course, the decision to let Lehman Brothers go into bankruptcy completely tanked the commercial real estate industry in many big cities, since the company was either a partner or financier in many deals. See "D.C. Deals Relied On Lehman Funding: Bank Was Monument's Main Financing Source" from the Washington Post.