Committee advances tax abatement for 1333 M St. SE to draft report, with affordable set-asides and public-space conditions

The Committee on Business and Economic Development voted unanimously on March 20, 2025, to advance the 1333 M Street Southeast Tax Abatement Amendment Act of 2025 to a draft committee report. Chair Kenyon McDuffie moved to draft the report with leave for staff to make technical, editorial and conforming changes; the motion carried by voice vote.

The bill, introduced as Bill 26-40 (previously introduced in Council Period 25), would provide a real property tax abatement for the property at 1333 M Street SE for amounts in excess of $150,000 per year for 15 consecutive tax years. The developer sought the abatement to attract financing for a project planned to provide approximately 900 residential units, about 100 of which would be set aside for households at or below 60% of the area median family income, along with retail space and public-space improvements.

The committee print makes five changes to the introduced legislation. It incorporates a $25,000 contribution to the Department of Parks and Recreation to support senior programming at the Arthur Capital Recreation Center, a one-time $25,000 contribution to the Seafarers Yacht Club, and clarifies that the units required to meet the 60% median family income set-aside must comply with inclusionary zoning requirements in the project's final zoning order. The committee also revised the abatement commencement date so that the tax abatement will commence on or after Oct. 1, 2029, and it now requires the mayor to certify to the Office of Tax and Revenue that the property is eligible for the abatement.

"This is a project that we have been working on for a very long time," Ward 6 Councilmember Charles Allen said during the committee meeting, thanking the chair and staff and describing the parcel as a triangular area south of the railroad tracks and east of Eleventh Street near the Anacostia River. Allen said the project could create new homes, jobs and green space while protecting nearby historic boathouses.

The motion advanced a draft committee report; staff were authorized to make technical and editorial changes before the report is finalized. The committee did not schedule a further markup or a date for Council floor consideration during this meeting.