THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Thursday, July 7, 1994 TAG: 9407070538
SECTION: LOCAL PAGE: B4 EDITION: FINAL
SOURCE: ASSOCIATED PRESS
DATELINE: WASHINGTON LENGTH: Short : 43 lines
D.C. Council gave initial approval Tuesday to a $34 million dollar tax package for a downtown arena for the Washington Capitals and Washington Bullets sports teams.
City lawmakers also gave preliminary consent to a bill that sets financing limits for a proposed $125 million convention center slated for the Mount Vernon Square tract north of the central business district.
``A golden opportunity has arisen for a downtown arena to be developed on a vacant parcel of land at Gallery Place,'' said D.C. Council Chairman Dave Clarke.
Abe Pollin, owner of both teams, has been working with city business leaders to procure a new 21,000-seat, state-of-the-art facility for his basketball and hockey teams.
The teams currently play in 21-year-old USAir Arena in Landover, Md.
A public hearing on the Washington arena project was scheduled for July 15, with a final council vote on the financing package slated for July 19.
Final approval must be given before the council's summer recess later this month because Pollin agreed last month not to negotiate with other jurisdictions for 30 days, Clarke said.
The council adopted an amendment exempting churches and nonprofit organizations from a fee levied on businesses and corporations to help finance the project.
The surcharge will be used for police and fire protection.
The package contains an amendment that would automatically raise a financing surcharge on hotel rooms and car rentals should the project exceed estimated costs.
The financing mechanism includes a surcharge increase on hotel rooms from 11 percent to 13.5 percent and increases in food sales and motor vehicle rental taxes from 9 percent to 10 percent. by CNB